Richard Portes of the London Business School spoke to CNBC this morning about the quantitative easing 2 and whether or not the Fed had any remaining options.
- 0:15 There are no other obvious macro-economic instruments available left. It isn’t the last shot, but it’s pretty close.
- 0:40 Look at long rates in treasuries, they’re way down, and that’s partly because of QE. We do know, via St. Louis estimates, that the dollar fell by about 5% as a result of QE1. That’s a sort of stimulus.
- 1:50 It’s hard to separate out what is making bond-purchasing surge, whether it’s QE or something else.
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