Minerd also wrote that European quantitative easing could cause a - TopicsExpress



          

Minerd also wrote that European quantitative easing could cause a so-called wealth effect. That refers to people feeling more wealthy and therefore spending more as the value of their assets increase, such as stocks or home values. Europeans generally have less of their financial assets in stocks and more in savings, meaning the wealth effect would likely be less pronounced that in the U.S. Separately, Minerd told CNBC on Thursday at the World Economic Forum in Davos, Switzerland, that the ECB is going to have to buy more bonds than the Federal Reserve did if it wants to boost euro zone economies. The ECB has committed to at least $1.3 trillion in bond buying; the Fed bought about $4.5 trillion of securities. cnbc/id/102368945
Posted on: Tue, 27 Jan 2015 04:55:37 +0000

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