Econintersect: The question of how QE (quantitative easing) works (and how it is supposed to work) were explained earlier this week by Catherine Mann and Robert Shiller in interviews with BBC‘s Paul Solman. Skip the parts about what the interviewees thought was going to happen at the Fed meeting on Wednsesday (Mann was wrong and Shiller noncommittal) and pay attention to the operational descriptions of how the process works. Catherine Mann is a former economist at the Federal Reserve and now professor of economics at Brandeis University and Robert Shiller (Yale University) is a Nobel laureate in economics.
Video can be viewed after the Read more >> jump.
Did you notice the brief non-speaking cameo appearance by another Nobel laureate, George Ackerlof, who is the husband of incoming Fed chair Janet Yellen?
The transcript of the Catherine Mann portion of the video is available at PBS.com.
Hat tip to John O’Donnell, Online Trading Academy Chief Knowledge Officer.
- What Happened to the Fed’s Trillions? They’re Back on Deposit…at the Fed! (Paul Solman, PBS.org, 19 December 2013)