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QE on steroids: Dancing with the devil

If quantitative easing must end, what next? There is another option, but it is seen as taboo

In an effort to address the poisonous after-effects of the global financial crisis, the major central banks have increasingly taken monetary policy into unconventional territory.

Quantitative easing, or large-scale asset purchases in secondary financial markets, has increasingly become their default option in an effort to lower long-term interest rates and credit spreads, boost appetite for riskier assets and swell the money supply.

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