No QE doesnt work. If it did, there would no need or 26 of them in Japan and 6 in US (and counting). You would think that if it was effective, they would get it right.
Even the Fed's own research is that the impact isnt much. QT, the opposite of QE, doesnt have much impact on rates.
...a $2.2 trillion passive roll-off of nominal Treasury securities from the Federal
Reserve’s balance sheet over three years is equivalent to an increase of 29 basis points in the
current federal funds rate at normal times,
Pg. 2
As for the GFC, we cannot overlook the fact that MBS were rated the same as US Treasuries. Hence the entire financial world was using them the same as TBill and Bonds. No wonder there was a massive bank run by the banks trying to get their collateral made whole.
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yikes
Well that’s illuminating and frightening at the same time.
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