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QE versus the Real Problems in the World Economy

School of Economics, The University of Sydney, Sydney 2006, Australia
The author of these remarks is the former Director of the Financial and Enterprise Affairs Directorate of the OECD, and was its representative on the Financial Stability Board Standing Committee on Vulnerabilities. He is currently and adjunct professor at Sydney University, a member of the OECD pension board and Chairman of the Anika Foundation. The comments are those of the author alone, and do not reflect those of any other institution.
J. Risk Financial Manag. 2020, 13(1), 11;
Received: 25 November 2019 / Revised: 24 December 2019 / Accepted: 30 December 2019 / Published: 4 January 2020
These notes are based on parts of a keynote address to the Fourth Annual Conference on Money and Finance at Chapman University on 6–7 September 2019. Quantitative easing (QE) policies have been pushed to extremes and extended well beyond their use-by dates to little plausible effect in achieving the goal of raising inflation and growth. Instead, they are damaging the interbank market (as exemplified by the liquidity crisis in September 2019), adding to the risk of financial crises in the future and taking pressure off policy-makers to deal with the real causes of poor investment, growth and deflation pressure. The shift in where investment is occurring and the special problems of Europe and Brexit are focused upon. View Full-Text
Keywords: quantitative easing; globalization; China; Brexit; target 2; Europe; interbank market quantitative easing; globalization; China; Brexit; target 2; Europe; interbank market
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Blundell-Wignall, A. QE versus the Real Problems in the World Economy. J. Risk Financial Manag. 2020, 13, 11.

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