When Easy Money Ends

Observers seize upon every new piece of economic data to forecast the continuation of quantitative easing or an acceleration of its decline. But more attention needs to be paid to the impact of either outcome on different economic players.

LONDON – The departure of US Federal Reserve Board Chairman Ben Bernanke has fueled speculation about when and how the Fed and other central banks will wind down their mammoth purchases of long-term assets, also known as quantitative easing (QE). Observers seize upon every new piece of economic data to forecast QE’s continuation or an acceleration of its decline. But more attention needs to be paid to the impact of either outcome on different economic players.

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