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Tag Archive: Quantitative easing


What is Helicopter Money?

What is Helicopter Money ? Why the Central bankers are using the term so frequently now?blog

The instant reference that can be drawn towards the Hollywood/Bollywood, kind of Robbin hood stories where the hero/villain throws money from the helicopter in the villages. Jokes apart

Getting back to economics “Helicopter money” is the term economists and market-watchers use for an aggressive form of monetary stimulus — the government’s power to print money — to try to spur growth and get inflation higher. There had been buzz that the Bank of Japan could move in that direction, but it elected to take only a smaller action. The bank did say it would do a “comprehensive review” of policy in the months to come that could presage more coordination between the bank and the Japanese government. Continue reading

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As Federal Reserve Chairman Ben Bernanke’s tenure draws to a close, these are the top 10 take away from the last night :blog

1.    Janet Yellen voter to taper

2.     Taper nothing more than symbolic – $10B split between Treasuries and MBS

3.     Fed changes forward guidance – Low rates now appropriate “well past the time that the unemployment rate drops below 6.5%”

4.     Bernanke believes FOMC will taper QE probably at each meeting, $10B each time with end of QE before 2014 year end Continue reading

While going through the RBI and research analyst conference, The RBI addressed four major risk in its latest policy,and biggest and the first imagesrisk factor stems from our vulnerability in the external sector, in particular sudden stop and reversal of capital flows that we saw over the last 10 weeks. It is not clear if financial markets have factored in the full impact of the prospective tapering of QE or whether we will have some spillover impact every time there is some announcement from advanced economies, in particular the US Fed.  Continue reading

Well this is brilliant on Saturday as a read 🙂images

The Federal Reserve is awaiting
That prices may start re-inflating,
So they can foresee
Unwinding QE,
Whose tapering they’ve been debating.

The Fed will not bother to taper
Its purchase of Treasury paper
‘Til the jobless rate now
And inflation allow
An end to their stimulus caper.
Bernanke must act with agility
To avoid causing stock volatility
‘Til he can discern
A sustainable turn
To price and employment stability.
From :

LIMERICKS ÉCONOMIQUES

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