Effects of Quantitative Easing Monetary Policy Exit Strategy on East Asian Currencies

Were East Asian Currencies Overvalued?

When and How To Exit Quantitative Easing?

S ince the onset of the financial crisis in late 2007, the Federal Reserve has injected an astronomical amount of money into the economy through its large-scale asset purchase (LSAP) programs. According to former Fed Chairman Ben Bernanke (2009, p. 5), the essence of LSAP is “credit easing” (CE)—that is, reducing the cost of private borrowing by direct purchases of privately issued debt instead...

Monetary Exit Strategy and Fiscal Spillovers

The aftermath of the global financial crisis has seen two types of concerns in regards to monetary policy outcomes. Some (eg Paul Krugman or Brad De Long) worry primarily about the short-term possibility of deflation caused by a prolonged slump. In contrast, others (eg Greg Mankiw or John Taylor) worry more about excessively high inflation in the longer-term caused by recent bailouts/quantitati...

How to Create a Recovery through ‘ Quantitative Monetary Easing

(1) The necessary condition for an economic recovery is the new creation of purchasing power. Non-performing loans form an obstacle to the banks’ ability to create this purchasing power, and this is the root cause of the recession. (2) At the present time the central bank alone is able to increase purchasing power. It is necessary that it engages in open market purchases of assets and active fo...

The Macroeconomic Effects of Quantitative Easing