<p>Seignorage is harmful if it is abused to cause hyperinflation. Without quantitative easing, we probably would've had mass deflation instead (which is arguably worse), and makes the Fed look not credible in striving for its target inflation rate.</p>

<p>There are different ways of implementing quantitative easing in other areas I think, but more or less, it is buying massive amounts of financial assets from banks and other financial institutions in order to lower their yield, which raises the price and increases the money supply. It is supposed to be inflationary, but QE is usually in response to when the short term interest rate approaches zero, and it becomes hard to do that.</p>

CC BY-SA 3.0
2015-11-08T05:10:30.537Z
So, QE is money-printing because it increases money supply?
curious
CC BY-SA 3.0
2015-11-08T05:15:27.763Z
Electronic money (so, some sort of credit) usually, but it isn't physically printing money.
Kitsune Cavalry
CC BY-SA 3.0
2015-11-08T05:17:06.523Z
I recommend further reading: http://www.economist.com/blogs/economist-explains/2015/03/economist-explains-5
Kitsune Cavalry
CC BY-SA 3.0
2015-11-08T05:08:02.743Z
2015-11-08T05:15:58.870Z
2015-11-08T05:15:58.870Z
Kitsune Cavalry
<p>Shortly after 2008, there were prominent commentators such as Jim Rogers who called Ben Bernanke an idiot and condemn him for printing money. However, there were also articles that suggest quantitative easing is really an asset-swap and not money-printing. On the other hand, there are articles that say the opposite.</p>

<p><a href="http://www.pragcap.com/bloomberg-quantitative-easing-isnt-printing-money/" rel="nofollow">http://www.pragcap.com/bloomberg-quantitative-easing-isnt-printing-money/</a>
<a href="http://www.bankingmyway.com/save/savings/what-does-printing-money-mean" rel="nofollow">http://www.bankingmyway.com/save/savings/what-does-printing-money-mean</a></p>

<p>What exactly is quantitative easing? Asset-swapping or money-printing? Does it raise the money supply? Inflationary or not? </p>

<inflation><money-supply><quantitative-easing>
Is Quantitative Easing an asset-swapping or money-printing exercise by the Federal Reserve?
curious
# Is Quantitative Easing an asset-swapping or money-printing exercise by the Federal Reserve?

(Asked by: username_0 on 2015-11-07)

Shortly after 2008, there were prominent commentators such as Jim Rogers who called Ben Bernanke an idiot and condemn him for printing money. However, there were also articles that suggest quantitative easing is really an asset-swap and not money-printing. On the other hand, there are articles that say the opposite.

<http://www.pragcap.com/bloomberg-quantitative-easing-isnt-printing-money/>
<http://www.bankingmyway.com/save/savings/what-does-printing-money-mean>

What exactly is quantitative easing? Asset-swapping or money-printing? Does it raise the money supply? Inflationary or not?

**Tags:** inflation, money-supply, quantitative-easing


---

## 1 answers

### Answer by username_1 on 2015-11-08. Score: 0 | Accepted answer

Seignorage is harmful if it is abused to cause hyperinflation. Without quantitative easing, we probably would've had mass deflation instead (which is arguably worse), and makes the Fed look not credible in striving for its target inflation rate.

There are different ways of implementing quantitative easing in other areas I think, but more or less, it is buying massive amounts of financial assets from banks and other financial institutions in order to lower their yield, which raises the price and increases the money supply. It is supposed to be inflationary, but QE is usually in response to when the short term interest rate approaches zero, and it becomes hard to do that.

> **Comments:**
> **username_0**: So, QE is money-printing because it increases money supply?  
> **username_1**: Electronic money (so, some sort of credit) usually, but it isn't physically printing money.  
> **username_1**: I recommend further reading: http://www.economist.com/blogs/economist-explains/2015/03/economist-explains-5  

---

