Post
Topic
Board Economics
Re: Why not just print dollars?
by
deisik
on 10/08/2015, 06:39:58 UTC
Isn't that what FRS had been doing during QEs? The newly printed money went directly to financial markets, them hitting new highs. Did it contribute to the devaluation of the US dollar? If it did, then why is the USD index soaring? I guess in today's perverted world with the currency wars raging, it is not so straightforward as it had been in the good old days...

It might have a lag effect. Which is why the US is so concerned about inflation and ended QE.
Interest rates are going to go up some time this year too. This is a pre-emptive measure to prevent high inflation.

Or they might just know what they have been doing, that is how to pass between Scylla and Charybdis with no particular damage, to themselves. Personally, I don't think they are really going to raise interest rates in September (or any time soon, for that matter), though they are highly interested that people think so...

In any case, only time will tell