Richard Lewis, Global Head of Equities at Fidelity says that QE has gone on too long, failed to properly stimulate the economy and no-one know's how it's going...

Livewire News

Richard Lewis, Global Head of Equities at Fidelity says that QE has gone on too long, failed to properly stimulate the economy and no-one know's how it's going to unwind. I think this is a subject for 2014 because one of the unwanted side effects of the current situation we have is that rapidly inflating asset markets create their own demand. Nobody's actually done a study of how much investment is investment in new goods and how much investment is buying financial assets or buying real estate. But I suspect if you did that, then an awful lot of what's called investment is just transfer of assets at ever-inflating prices. QE was an appropriate -policy at the peak of the crisis but only as a temporary measure, and QE is a very inappropriate monetary policy. It's a huge monetary experiment, nobody knows how it's going to end. Read: (VIEW LINK)


Livewire News

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

economy usa

Comments

Please sign in to comment on this wire.