QEII

Aditya Rana writes....

Criticisms of QE2 have centered around its inability to increase growth and reduce unemployment while stoking inflationary pressures in the economy through an increase in money supply. As pointed out in last week’s newsletter, the impact of quantitative easing on the economy is likely to be muted while its impact on increasing asset prices can be significant. However, it is unlikely to have any impact on inflation in the developed world due to prevailing excess capacity and lack of credit growth. But, most importantly, it does have a significant impact on increasing asset prices and inflation in emerging markets as argued by two star managers at the well known hedge GLG in the FT last week.

Read more on the Aditya Rana page in this Blog Post......

Jaidev