I HAVE long thought of the US Federal Reserve's quantitative easing programme (QE) as a bit like a drip keeping a patient in a coma alive until it can be brought out of the coma and survive on its own. The patient was the US economy post the Global Financial Crisis (GFC) and the Fed was administering the drip.
Quantitative easing involved the Fed using printed money to pump cash into the struggling US economy by buying up government bonds and mortgage-backed securities. The first two rounds of QE ended prematurely in 2010 and 2011 before the US economy was ready to be taken off life support.
However, having learned its lesson, the phasing down of the latest round - commonly called QE3 - was made...
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