The Diminishing Marginal Utility of Excess Bank Reserves
by Bob McTeer
June 26, 2012
Source: Daily Markets
This is not an argument for more quantitative easing, or QE3, as it would inevitably be called. Instead, this is about the logic of the argument for more quantitative easing. It is intended as a response to the oft-heard argument that more quantitative easing wouldn’t stimulate the economy because past quantitative easing hasn’t produced the desired results.