Steve Keen has just posted an in-depth study on QE relating to the US. To QE Or Not To QE. Clear, and with useful charts, but you have to pay attention. He deals with double-entry book keeping on the way and also with Bernanke and Krugman and their 'neoclassical blindspot about banks'. He thinks that QE will not create a Great Inflation generally because of the huge proportion of private debt to GDP which is higher than it ever was in the Great Depression. He reminds of Michael Hudson's comment “Bernanke’s helicopter is dropping money on Wall Street, not Main Street”, and on fears that QE is helping drive a stock market bubble.
More from Michael Hudson on: Restore the Happy Bubble Economy
More on the recent Transforming Finance conference to follow.
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