An interesting article appeared in the Financial Times arguing that Central Bank quantitative easing will lower living standards long term.
“…the prospect of improvement in economic growth is largely a monetary illusion. No one needs to explain how policy makers have made painfully little progress on the structural reforms necessary to increase global productive capacity and stimulate employment and demand. Lacking the political will necessary to address the issues, central bankers have been left to paper over the global malaise with reams of fiat currency.”
Makes sense. Look at the consumer purchasing power of the US dollar since 1913.
The Federal Reserve balance sheet expansion has masked the declining homeownership rate in the US.
US wage growth never quite recovered following the financial crisis.
As labor productivity decreases.
Yes, it appears that Central Banks QE (aka, money printing) is simply covering up underlying systemic problems in the US economy.
Fed Chair Janet Yellen and ECB President Mario Draghi discussing “the little people.”
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