Tilting At Windmills: The Faustian Folly Of Quantitative Easing

By Steve Keen – economics professor and Head of the School of Economics, History and Politics at Kingston University in London – Debt Deflation blog.

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As I explained in my last post, banks can’t “lend out reserves” under any circumstances, which undermines a major rationale that Central Bank economists gave for undertaking Quantitative Easing in the first place. Consequently, the hope that Bernanke expressed in 2009 is “To Dream The Impossible Dream”:

To dream the impossible dream
To fight the unbeatable foe
To bear with unbearable sorrow
To run where the brave dare not go

Former Chair of the Federal Reserve Ben Bernanke listens while US Secretary of the Treasury Jacob Lew speaks at the Brookings Institution July 8, 2015 in Washington, DC. AFP PHOTO/BRENDAN SMIALOWSKI (Photo credit should read BRENDAN SMIALOWSKI/AFP/Getty Images)

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