“The Fed has a lot of power in the economy because it has a big impact on the supply and cost of credit, that is, interest rates. It also plays a key role in supervising banks and historically has seemed to take it easy on the banks when it shouldn't have, such as in the lead up to the financial crisis.” PlayBigsEasyInterestRolesEconomyKeysCostCrisisImpactRateFinancialCreditFedsInterest RateFinancial CrisisTake It EasyBig Impact Author:Gerald Epstein
“The impact of QE on generating more lending by Wall Street to Main Street and in generating more employment and increasing overall investment in the economy is quite modest. QE probably limited the initial collapse of the economy in 2008, and likely had a very small positive impact on economic growth, but its broader impact on jobs and growth in the economy seems not very big.” BigsSeemsJobsGrowthEconomyEconomicStreetsWallImpactInvestmentEmploymentCollapseModestInitialsEconomic GrowthLendingPositive ImpactMain Street Author:Gerald Epstein
“Initially, QE contributed to a pretty significant increase in inequality. It raised asset prices, which are owned primarily by the wealthy, while having relatively small if any positive impacts on bank lending, employment, wages or economic growth, so ordinary people haven't had much help. By the third round of QE in 2012-2014, the effects had likely muted quite a bit. There were probably not big impacts on asset prices from QE and the positive effects on employment growth might have strengthened somewhat.” PeopleIfsHelpingBigsMightBitsGrowthEconomicEffectsHavensOrdinaryThirdsIncreaseImpactRaisedRoundsSignificantEmploymentInequalityWealthyAssetsWagesOrdinary PeopleEconomic GrowthLendingPositive ImpactHaving StrengthBig Impact Author:Gerald Epstein
