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...

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)


MORE ON



2 topics

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

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.