By Yves Smith -
Yves here. This post looks at the unwinding of quantitative easing in the UK and raises some concerns. The first is that the Bank of England will incur explicit losses due to the inevitable “buying high” and having to sell assets, which will result in lower prices. Note that the Fed has said it will effectively finesse this issue by virtue of not selling the assets it purchased during its QE program.
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Can we ever end quantitative easing?
