Middle East Economic Survey

VOL. LIII

No 46

15-Nov-2010

QEs Channels Are Narrow And May Have Dead Ends

By Shawkat Hammoudeh

Dr Hammoudeh is Professor of Economics and International Business at Drexel University. He can be reached at hammousm@drexel.edu.

The US Federal Reserve has extended its quantitative easing, now dubbed as QE2, by announcing that it will print $600bn to purchase longer term government securities. 1 The Fed has experienced some success from using its QE1, although...