Strategic Quantitative Easing

The idea behind QE is that investors selling their Treasury securities to theFed forcash will earn .25% their cash deposits, unless they reinvest the cash in real businesses that employ people and fetch potentially higher expected returns (than .25%) consistent with the risk of such businesses. QE can thus create employment if investible businesses not tapped so far exist. The investors may choose to invest their emerging markets overseas. Only if such overseas investments generate demands for goods made will it generate jobs for Americans.

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