SLI View: Does the US need QE3?

While the programme of US bond purchases, affectionately known as QE2, has yet to be completed, there are already calls in America for a new initiative (presumably to be known as QE3) to be introduced. QE is dead, long live QE! However, isn’t it a tad paradoxical that the apparent failure of QE2 should bring calls for more of the same? Einstein’s definition of insanity was doing the same thing over and over again, expecting a different result. It seems highly reasonable that, before embarking on another round of spending, there should be an appraisal of how far the present programme met ...