QE’s potential demise in the US has sent the world’s stock markets into a downward spin, providing the surest indication of where much of the benefit of this money printing exercise went.
QE was meant to provide liquidity when banks weren’t lending.
It has had the bonus of cancelling vast amounts of national debt since owing yourself money is not debt.
The reality is it has not boosted the economy – it has just boosted speculation and the financial institutions of the world who were the last people who needed to benefit.
It could have been so different. As I have long argued we needed green quantitative easing instead – which is a programme of spending money into the economy to create jobs and green infrastructure It could have worked. It still will work as the need for stimulus and liquidity has not gone away. The question is whether any politician will be brave enough to do it.