Larry Summers and I definitely agree on one thing – QE is much more hyped up than it deserves to be. The FT has a good piece discussing how Summers isn’t a big fan of QE. They say:
“Lawrence Summers made dismissive remarks about the effectiveness of quantitative easing at a conference in April, raising the possibility of a big shift in US monetary policy if he becomes chairman of the Federal Reserve.
“QE in my view is less efficacious for the real economy than most people suppose,” said Mr Summers according to an official summary of his remarks at a conference organised in Santa Monica by Drobny Global, obtained by the Financial Times.”
I don’t know what that would mean for QE going forward, but maybe Summers isn’t a big fan of the Bernanke Put? After all, the “Summers Put” just doesn’t have as nice of a ring to it. I seriously doubt he’d unwind QE in a destabilizing fashion since it clearly has a strong behavioral impact on market participants. But Summers might put an end to the idea of QE^n.