At some point, all that firepower will most likely translate into much higher asset prices.
So QE is a kind of magic bullet, helping all asset prices to rise.
Although asset prices may be buoyant at the moment, there are other risks ahead.
Who didn't get carried away with the explosion in asset prices in the 1990s?
The cost was rocketing interest rates, plunging asset prices, slowing business activity and rising unemployment.
But now that Asia's asset prices have deflated (FORBES GLOBAL, Apr.6), Alwaleed is more interested.
Of course, central banks know about the difficulties that surging and plunging asset prices can cause.
The more confidence weakens and asset prices fall, the more eager is the rush into cash.
At the same time, reported inflation is going to continue to rise, as will asset prices.
No. 3, panic, has left the building, leaving numbers 1 and 2 governing asset prices.
His public view on the link between monetary policy and asset prices has also shifted.
And then I have a real skepticism about the Federal Reserve even considering asset prices.
The issue is whether improving asset prices will make people more willing to spend.
The result soon was skyrocketing oil, gold and other hard-asset prices, and general inflation.
And once the supply of credit ceases to expand then asset prices basically cease to rise.
Industry experts say asset prices are rising as companies pour into the water-infrastructure sector.
The IMF-peddled solution to this is "internal devaluation" - wages fall, prices fall, asset prices fall.
Falling asset prices meant that many banks and firms had debts that outweighed their assets.
Of course, policy makers hope loose-money-induced higher asset prices will lead to a wider recovery.
If an unsustainable rise in asset prices goes into sharp reverse, this can trigger financial instability.
Just as with product prices, rapid increases in asset prices can distort the allocation of resources.
China demand is seen driving up asset prices for everything from soybeans to Louis Vuitton handbags.
The Fed has certainly been looking closely at asset prices over the past year.
ECONOMIST: Should central banks try to target asset-price inflation?
But a long war (or a longer phoney war) could undermine growth and asset prices.
ECONOMIST: The Bank of England yanks down its growth forecast
The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009.
Optimism can easily become irrational exuberance: asset prices in some emerging markets have risen too high.
With asset prices plummeting and economies shrinking, deflation will soon be a bigger worry.
The economy has stalled, asset prices have dropped sharply and companies' labour forces are growing older.
But it should take more account of the impact of asset prices on the economy.
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