Jan 16 (Reuters) – Well, now we know: monetary policy
certainly isn’t rocket science.
Asked on Thursday if he was confident before implementing
quantitative easing that it would work, outgoing Federal Reserve
Chairman Ben Bernanke quipped:
“The problem with QE is that it works in practice, but it
doesn’t work in theory.”
Seriously, imagine a NASA official after a moon shot joking
that the booster rockets had worked in practice but not in
theory. Think of the looks he might get from the astronauts
standing alongside him.
Now, of course, Bernanke should be permitted one joke per
four-year term, and he did go on to say that the Fed’s use of QE
was grounded in practical experience from Japan and elsewhere as
well as theoretical underpinnings from academia.