ETFs &
the Fed Wealth Effect, Stock Valuations & ETFs, ETFs & Bear Markets, The Economy & ETFs, ETFs & Market Internals, ETF Portfolio Allocations, Treasury Bond ETFs, Large Cap ETFs
Not exact matches
It should come as no surprise that the «
wealth effect» is not
feeding the middle class.
From no
wealth effect realization to meaningful financial market distortions to less Treasury issuance ahead, the
Fed knows the costs and the risks (financial bubbles) of further QE are outweighing the less than hoped for positives.
That said, it's not at all clear that the FOMC more generally has shifted from the theoretical view that there is a Phillips Curve between unemployment and inflation that can be manipulated by the
Fed, nor the view that the
Fed can exploit a meaningful «
wealth effect» from financial assets to the real economy.
«
Fed Chair Ben Bernanke and other
Fed advocates believe the «
wealth effect» of QE3 will bring life to the economy.»
Nelson, T, Simshauser, P & Nelson, J 2012, «Queensland Solar
Feed - In Tariffs and the Merit - Order
Effect: Economic Benefit, or Regressive Taxation and
Wealth Transfers?»