I read the latest paper by Xiao Hei Ge.

CN
Lanli
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6 hours ago

I read the latest paper by Xiao Heige and feel that he is overly optimistic about the future (of course, it may just be to recharge everyone's faith).

The likelihood of interest rates dropping all the way to 0% is low; they may drop to between 2% and 3%. According to his calculations, that's about 1 trillion.

Ending QT cannot be called a liquidity injection… I won't explain this further; this part cannot be counted.

For QE, let's consider it as 1 trillion.

There's also a question here: QE will likely only start after interest rates drop to 0, so we return to the first question: will rates drop to 0?

From the performance of the U.S. economy over the past two years, it seems unnecessary. Unless there are significant changes.

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