Some economists argue that quantitative easing had little effect, because the policy of injecting lots of liquidity into the financial system did not succeed in its stated goal of persuading banks to lend more.
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In effect, these efforts had diluted the effect of quantitative easing, by increasing the chance that the extra cash the Bank had injected into the system would sit idle on bank balance sheets instead of being re-lent.
Quantitative Easing would have the net effect of the federal government not increasing the debt it owes itself.
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When pressed to say whether more quantitative easing would have the desired effect, the incoming governor said, matter-of-factly, that Bank of Canada research had concluded the policy was having diminishing returns, especially in the US. He added this was "not surprising".
The Fed justified its second round of quantitative easing partly on grounds that the wealth effect of rising stock prices would stimulate consumer spending and, by extension, boost output and reduce unemployment.
The effect would be to restart the policy of quantitative easing that Japan used to claw out of its banking crisis between 2001 and 2006.
Quite scarily, the slower growth that the falling dollar tautologically foretells promises a pile-on effect, or more clearly, renewed Federal Reserve activity of the quantitative easing variety.
"Russia will have the right to opt out of the treaty if qualitative and quantitative parameters of the U.S. strategic missile defense begin to significantly effect the efficiency of Russian strategic nuclear forces, " Mr. Lavrov told the AP.
Instead, it may use its September meeting to announce another round of quantitative easing, or printing money to buy assets, in the hope of achieving a similar effect.
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The Federal Reserve, with Chairman Ben Bernanke at the helm, has tried desperately to prop up the economy, introducing two programs of quantitative easing, or long-term asset purchases designed to lower interest rates, spark a wealth effect, and alter expectations.
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On the flip side, once the Bank of England begins unwinding the quantitative easing programme, the deficit will rise again, so one could see the transfer as a temporary effect.
Allowing for the effect of transferring the interest income that the Bank of England has earned as a result of quantitative easing, that measure of borrowing has actually fallen for the remaining years of the Parliament.
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