Friday, June 17, 2011

If QE2 Was Price-Level Targeting, It is Starting to Work

Has QE2 worked? Some say yes, some say no. The answer depends on what you wanted it to do.
If you wanted a quick revival of the housing market, a boost to GDP growth, and rapid job creation, it's easy to say QE2 has failed. None of those indicators look good. On the other hand, if you thought the purpose of QE2 was to save the country from deflation, then it looks better, especially if you are a fan of price level targeting.

Follow this link to read the full post on Ed Dolan's Econ Blog at

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