Rethinking Quantitative Easing: Balancing Success and Consequences
Economists and central bankers are reevaluating the strategy of quantitative easing (QE) that was implemented to save the global economy but resulted in bubbles and distortions. The ongoing debates focus on the flexibility of central banks in reaching inflation targets, the effectiveness of asset purchases, and the coordination between monetary and fiscal policies. Economists predict that central banks will be more cautious with QE in the future, using it sparingly or solely for addressing financial stability concerns. There is also a growing discussion about the need for closer coordination between monetary and fiscal policies to manage inflation and economic cycles effectively.