For the U.S., ‘quantitative easing’ (QE) is over—for now, anyway. While the costs and benefits will take time to reveal themselves completely, we can assess what we know of it to this point. To make sure we’re all singing the same notes, let’s begin with a brief summary of what QE is and how it was accomplished here in the U.S.
First of all, QE was a derivative, if you will, of the standard functioning of the Federal Reserve System (the Fed). Even among the most developed nations central banks have somewhat different functions in different monetary systems.