The cost of reversing QE policies
Joseph Sternberg The Wall Street Journal
Last Tuesday, Sweden’s central bank asked taxpayers for a $4.1bn cash injection to “make good the losses” the Riksbank has experienced due to quantitative-easing (QE) policies, says Joseph Sternberg. The effect of QE policies, adopted “pretty much everywhere” since 2008, has been to turn central banks “into a form of asset manager”. In the good times, it was profitable: coupled with low interest rates, the policy “inflated the market value” of