Brad DeLong Debates Jim Grant on the need for QE3

By Edward Harrison On Jun 16, 2011

With the U.S. economy showing signs of softness as the Fed’s second round of “quantitative easing” is set to expire, many are asking whether a third round of stimulus is in order. Berkeley’s Brad DeLong and Jim Grant, of Grant’s Interest Rate Observer, offer their differing takes on whether QE3 is a good idea.

– Real Time Economics

Edward Harrison 7783 posts 575 comments

Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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10 Comments

Fred says 14 years ago

What DeLong derides as “hoarded cash” Grant understands as peoples’ life savings.
Edward Harrison says 14 years ago

Fred commented on Credit Writedowns:

What DeLong derides as “hoarded cash” Grant understands as peoples’ life savings.
john newman says 14 years ago

DeLong wouldn’t know inflation if it bit him in the assets. While Jim is a hard money guy and I disagree with him about many things, he is certainly right that asset prices are being inflated by QE. On the other hand I’m with Delong on hoarding: the savings rate is as low in Japan as it is here: the vast majority of bonds there as here are held by financial institutions or governments, not aging savers, but Jim is right that it is the aging savers that are being hurt.
flow5 says 14 years ago

Grant is an engaging writer and market commentor but he doesn’t understand economics – he doesn’t believe anyone can predict interest rates.

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