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Axel Merk

Not All Printing Presses Created Equal

I was honored to congratulate Richard in person at his 90th birthday late last month.

As the European Central Bank meets once again in what are supposed to be quiet summer days, it’s time to clear up some central banking myths. Earlier in the week, the Wall Street Journal lamented that the European Central Bank (ECB) hasn’t printed as much as the Federal Reserve (Fed), implying that the economy in the Eurozone would be much better if only they had been engaging in “QE.” I’ll zoom in on just a few aspects of what is misguided about that analysis. Please have a look at the chart below, showing the relative growth of several major central bank balance sheets:

 

 

When we talk about central banks “printing money,” we generally don’t mean the printing of physical currency. The "printing" is the same process the Fed follows with "quantitative ... Log in or subscribe to continue reading.


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