<p>that is a really good question. One nuance to your answer might be found in this <a href="https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/federal-reserve/v/more-on-quantitative-easing-and-credit-easing" rel="nofollow noreferrer">video</a>. </p>

<p>Basically, Ben Bernanke once defended the Fed's QE Program by saying, "What we did was <em>Qualitative</em> Easing, not Quantitative Easing." The Fed made a specific effort to buy securities like MBS after 2008. In a true QE Regime, the Fed would buy comic books if they could - they just want to pump money into the system. </p>

<p>Your Q is good, and one answer I can come up with: the Fed <em>might</em> want to buy specific <a href="https://www.investopedia.com/terms/a/asset-backedsecurity.asp" rel="nofollow noreferrer">ABS</a> like those packaging restaurant franchisee receivables. This is obviously because the food industry has fallen off a cliff - as have any securities associated with that industry. So, maybe <code>$1</code> spent buying those ABS is better than $1 of MBS, etc. </p>

CC BY-SA 4.0
2020-03-30T00:00:54.443Z
2020-03-30T00:00:54.443Z
David
<p>Recently the central bank said in a statement on its website. “Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”</p>

<p>What would be an efficient investment strategy for the central bank to stimulate the economy? Please explain why?</p>

CC BY-SA 4.0
2020-03-25T08:52:11.367Z
With infinite money creation ability, your somewhat surreptitiously concealed premise that investment strategies need be 'efficient' does not apply.
Frank
<macroeconomics><monetary-policy><stock-market><federal-reserve>
what would be an efficient investment when central banks have massive qe?
wakbouf
# what would be an efficient investment when central banks have massive qe?

(Asked by: username_0 on 2020-03-25)

Recently the central bank said in a statement on its website. “Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”

What would be an efficient investment strategy for the central bank to stimulate the economy? Please explain why?

**Tags:** macroeconomics, monetary-policy, stock-market, federal-reserve

> **Comments:**
> **username_1**: With infinite money creation ability, your somewhat surreptitiously concealed premise that investment strategies need be 'efficient' does not apply.  

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## 1 answers

### Answer by username_2 on 2020-03-30. Score: 0

that is a really good question. One nuance to your answer might be found in this [video](https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/federal-reserve/v/more-on-quantitative-easing-and-credit-easing).

Basically, Ben Bernanke once defended the Fed's QE Program by saying, "What we did was *Qualitative* Easing, not Quantitative Easing." The Fed made a specific effort to buy securities like MBS after 2008. In a true QE Regime, the Fed would buy comic books if they could - they just want to pump money into the system.

Your Q is good, and one answer I can come up with: the Fed *might* want to buy specific [ABS](https://www.investopedia.com/terms/a/asset-backedsecurity.asp) like those packaging restaurant franchisee receivables. This is obviously because the food industry has fallen off a cliff - as have any securities associated with that industry. So, maybe `$1` spent buying those ABS is better than $1 of MBS, etc.


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