3/2 (Tue.) What is the impact of QE-Quantitative Easing(Host: Miller)

YOYO member
文章: 16
註冊時間: 週三 5月 09, 2018 6:17 pm

3/2 (Tue.) What is the impact of QE-Quantitative Easing(Host: Miller)

文章 miller »

This is Miller, your host for the meeting on 3/2.
It's my honor to host again.
This time we want to discuss the impact of Quantitative Easing(QE).
Through the media, most people only know the QE can rescue economic recession, but it has serious impact on individuals even we are never aware.
In this meeting, we are going to introduce what matters to our future life.
QE is a form of monetary policy used by central banks as a method of quickly increasing the domestic money supply and spurring economic activity.
It was created by Bank of Japan (BOJ) in 2001 in order to curb deflation and stimulate the economy. Finally it failed to meet the goal.
For the 2008 financial crisis, the QE played a great performance in United States.
Then during the COVID-19, the Fed( Federal Reserve) made a larger scale QE in response to the economic shutdown.
There was 60 trillion US dollars circulating in the world after 2008 financial crisis. Until now the amount got to 100 trillion.
It seems very great to spur economy, but who would benefit and who would suffer from the program?

What is quantitative easing in a short video.
https://www.khanacademy.org/economics-f ... ive-easing

What is quantitative easing and how will it affect you?

The economic impact of QE by time.

Some facts of QE as below.
1. QE may be just a way for governments and commercial banks to hide their problems and rely on the central bank to solve them.
2. QE can kick the inflation to a very high level.
3. QE worsens the problem of economic inequality.
4. QE is typically implemented when interest rates are approaching zero because, at this point, central banks have fewer tools to influence economic growth.
5. QE can devalue the domestic currency.

Session I:
1.Did you ever find anything different in your life after the QE(both of the 2008 financial crisis and COVID-19 pandemic)?
2.Do you believe that the QE can rescue us from suffering of the COVID-19 pandemic? Why or why not?
3.Most countries expected the economy is going to shutdown then lunched QE after the pandemic. But the stock markets all over the world are prospering for a while. Do you think it is a good situation for most people?
4.Please list the pros and cons of QE to yourself. And share with your table mates.

Session II:
1.There are several kinds of approaches to spur the economy, for example, reducing tax, stimulus coupon and QE. Which one is your preference? And why.
2.Because the market had been full of hot money, most commodities are on the rise. Rich people benefit from the result, but poor people suffer from it?
Is it fair for the society with extremely economic inequality?
3.As your experience, what will be changed in the near future? Inflation, increasing tax, worsening economy, higher unemployment rate or others?

6:45 ~ 7:00pm Greetings & Free Talk / Ordering Beverage or Meal / Getting Newcomer’s Information
7:00 ~ 7:10pm Opening Remarks / Newcomer’s Self-introduction / Grouping
(Session I)
7:00 ~ 7:40pm Discussion Session (40 mins)
7:40 ~ 7:55pm Summarization (15 mins)
7:55 ~ 8:0pm Regrouping / Instruction Giving / Taking a 5 Minutes Break (Intermission)
(Session II)
8:00 ~ 8:40pm Discussion Session (30 mins)
8:40 ~ 8:55pm Summarization and conclusion (15 mins)

Meeting Date: As shown in the Subject Line
Meeting Time: 7:00pm – 9:00pm
Meeting Venue: 丹堤咖啡 Dante Coffee (Minimum Order $80)
Address: 台北市濟南路三段25號-捷運忠孝新生站3號出口步行3分鐘
Important Notes:
1. Participants are recommended to print out the questions for the discussion. Also, the supporting articles, if preferred not to access them via their own mobile phone.
2. Please read the articles and discussion questions provided by the host and write down your thoughts in English in advance.

For Newcomers:
1. Please prepare a two-to-three minute introduction of yourself in English. You may also be asked to give brief feedback at the conclusion of the meeting.
2. The entire meeting is conducted in English. All participants should at least have moderate English conversation skills and be able to articulate your ideas for each discussion question.
3. Newcomers are welcome to attend the meeting and join the discussion up to three times. Formal membership with a lifetime membership fee NT$1000 is required afterward.
Iris Wu
YOYO member
文章: 756
註冊時間: 週二 5月 20, 2014 4:33 pm

Re: 3/2 (Tue.) What is the impact of QE-Quantitative Easing(Host: Miller)

文章 Iris Wu »

Modern financial system is complex. Even some so-called “Facts about QE” are probably debatable.
First, most people said QE is “printing more money”, but it’s not physically printing currency. It is much more complicated than just “printing money”.
Secondly, the statement, QE leads to inflation, is questionable. It was proved QE did not create consumer goods inflation. What needs to be clarified is what type of inflation the QE would create, and what type of mechanism (tools) the government (and Fed) has adopted to improve the previous pitfalls in 2009 and 2012, or even earlier version of Japan QE in 2001.

Weather this round of QE is going to work is yet to be proven, but I do see they are improving this financial tool and working very hard to bail out the general main street, instead of just the Wall Street. Let’s chat more about the details in the meeting.