Some of the short term fixes include Quantitative Easing and tax increases for those who can most afford it.
Thanks to several rounds of quantitative easing both short-term and long-term rates have hovered near zero levels for a prolonged period of time.
FORBES: 3 Investment Ideas to Ride a Japanese Rebound, EWJ, JOF, and KUB
In the longer term, the quantitative-easing policy in the U.S. and the bond-buying in Europe could lead to a depreciation of both the dollar and the euro, which would make the stock market a riskier investment compared with commodities, analysts believe.
Short term benchmark rates hover near zero and with quantitative easing, the Fed even sought to lower long-term rates too.
For the actual aim of such quantitative easing is to bring long term interest rates down.
FORBES: Apple's iPhone 5 Is Worth More Than The Efforts Of The Federal Reserve
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.
FORBES: 'No Real Hope In Sight' As Case-Shiller Shows Housing Recession Still Here
After unveiling a fourth round of long-term asset purchases, or quantitative easing, and a new threshold-based guidance, the Federal Reserve has put itself on a path of unlimited purchases of Treasuries and residential mortgage-backed securities (RMBS) until the unemployment rate falls.
FORBES: 2013 Is Bernanke's Year: Unlimited QE And Total Control Of The Fed
However, just the anticipation of additional quantitative easing and still lower long-term interest rates has already potentially begun to pump up the next bubbles, as investors have moved out the risk curve in an effort to find higher rates of return.
Then central banks resorted to quantitative easing (QE), a polite term for the creation of money.
Often, the distinction is made that quantitative easing implies the purchase of longer-term Treasury bonds rather than short term Treasury bills.
The expectation that the Fed will continue its quantitative easing measures could provide some short-term momentum but at some point the program will have to end, he said.
But the economic news has been so gloomy lately, many believe another round of quantitative easing - to push down long-term interest rates and support the economy - is now firmly on the cards.
Unlike the Fed, which has engaged in a wide-ranging Quantitative Easing exercise aimed at reducing longer-term interest rates, the ECB has only ever engaged in bond purchases in the most grudging way possible and currently has no active bond purchase program.
Bernanke has been in the hot seat ever since the Fed unleashed its repeated programs of quantitative easing (QE), or longer-term asset purchases.
FORBES: Deflationary PPI Questions Effectiveness Of Bernanke's QE
The Federal Reserve has already embarked upon two rounds of quantitative easing, which is buying of long-term Treasury securities in an effort to push down market-set interest rates.
FORBES: Fed Expected To Try To Sooth Markets But Not Undertake New Quantitative Easing Tuesday
When gold first faltered early in the year, improving economic conditions had many financial-market participants thinking about an eventual FOMC withdrawal of the bond-buying program meant to push down long-term interest rates, referred to as quantitative easing.
FORBES: METALS OUTLOOK: Gold Market To Focus On Central-Bank Meetings, Jobs Report, Physical Demand
By its own words, the goal of quantitative easing (QE) was to lower long-term interest rates.
Again, leaving aside the possibility of a new round of quantitative easing by the Federal Reserve in the immediate-term, the latest policy moves have already been priced in.
FORBES: Is The Rally Over? German Court Ruling And Bernanke The Final Catalysts
December gold rose steadily in August and September, first on expectations and then confirmation of more bond buying from the Federal Reserve referred to as the third round of quantitative easing and aimed at pushing push down long-term interest rates.
FORBES: Gold Traders Eye U.S. Dollar, Technicals As Consolidation Continues
This, and another program referred to as Quantitative Easing 3, are intended to push down long-term market-set interest rates to help jump-start the economy.
FORBES: Gold Market Expected To Focus On Greece, Fiscal Cliff, Fed Speakers Next Week
The Fed chairman defended the past two rounds of quantitative easing, in which the central bank buys long-term Treasury securities in an effort to push down long-term yields.
FORBES: Gold Market Buoyed By Bernanke's Jackson Hole Remarks; QE Hopes Remain
The only difference under quantitative easing is that the purchases probably focus on longer-term Treasury securities rather than short-term Treasury securities hoping to push longer-term yields down a bit as well as get credit and money flowing again.
FORBES: The Cartoon View Of Quantitative Easing: Too Dumb Is Clever
Quantitative easing is a bond-buying program to lower long-term interest rates.
FORBES: FOCUS: Fed Not Likely To Announce Stimulus At FOMC Meeting; Gold Might Be Pressured
According to the meeting minutes, the members of the FOMC have taken a step closer to a third round of quantitative easing, or bond-buying purchases to lower long-term interest rates.
FORBES: FOCUS: Gold Rises After FOMC Minutes Show Discussion About More Monetary Easing
Much of the run-up came on anticipation of further buying of debt securities by the Federal Reserve in a bid to push down long-term yields, referred to as the third round of quantitative easing, or QE3.
FORBES: Gold's Recent Pullback Viewed As Correction; Buying Anticipated On Further Weakness
Yields on 10-year Treasurys are down at 2.4%, as investors continue to speculate on the quantitative easing measures that the Federal Reserve could take to ease long-term credit.
Some believe that quantitative easing is setting the economy up for an inflationary surge in the long term.
ECONOMIST: A very unusual sign of confidence in economic policy
He specifically targets the Fed's "unprecedented" policy of sustaining near-zero interest rates and its exercise in money-printing, "Quantitative Easing 2, " that has it buying medium- and longer-term securities from the Treasury.
WSJ: The Weekend Interview with Paul Singer: Mega-Banks and the Next Financial Crisis
Given the weak jobs report released in early September, there is a strong likelihood another round of quantitative easing is imminent and the Federal Reserve could elect to purchase long-term mortgage securities this time around.
FORBES: How To Make Money In Stocks From The Real Estate Rebound
Bernanke referred to the Federal Reserve's quantitative easing program to buy Treasury securities as a successful measure in stimulating long-term interest rates and raising the prices of equities, while also emphasizing that the practice does not really constitute government spending, as the Fed is not purchasing goods and services.
应用推荐