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Interesting analysis by Slate on "Quantitative Easing"

By TinSoldier - Posted on 07 July 2011

Since the onset of the 2008 financial crisis the Federal Reserve has twice attempted to stimulate economic growth through a somewhat unorthodox maneuver called quantitative easing, wherein the Fed buys back Treasury bonds from big banks. When Fed chairman Ben Bernanke last year announced the $600 billion second round of quantitative easing (which within the finance world goes by the nautical-sounding nickname "QE2"), he warned that it might have some unanticipated consequences. "We do not have very precise knowledge of the quantitative effect of changes in our holdings [of Treasuries] on financial conditions," he said. One of these side effects turns out to be that, at least in the short term, the rich got richer and the poor got poorer.

More at the article.

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