Quantitative easing: a year on

Earlier this month the Bank of England announced a halt to its quantitative easing programme. Other central banks also have complex exit strategies to undertake. But how successful has QE been and did it have the desired effects?

When historians look back on the financial crisis and equity bear market of 2007-09, they will point to the exceptional response: nationalisations, liquidity support, interest rate and tax cuts. One of the most notable decisions was quantitative easing (QE). Almost one year on from its introduction how successful has it been? Can we see benefits? Will there be problems when this excess liquidity is withdrawn? Different approaches across the world The first point to emphasise is different central banks approached QE in different ways. In the US, the Federal Reserve largely bought m...