Bernanke’s latest speech is here. He has banished the term “QE” from the FED’s vocabulary. QE, you recall, was the euphemism for heavy FED buying of securities that inflated high-powered money (raised bank reserves). The FED creates its thin-air money by such buying, such inflation of its bond holdings, or such QE. The only place in his article that QE appears is in the titles to some papers that he references. Bernanke banished the term QE because it had gotten a negative connotation. Also, he now buys time while newbies and oldbies figure out that LSAP is the same as … Continue reading Bernanke’s Latest: LSAP Replaces QE