I haven’t found much insightful analysis of yesterday’s announcement by Ben Bernanke of a third round of so-called quantitative easing.*
For now, Heidi S. Moore seems to have come up with the best analogy:
A lot of people are wondering whether this third round of quantitative easing will help out the jobs situation here in the U.S., but the fact of the matter is, the Fed is really just helping the markets, because that’s all it can do — it has no power over the economy. Think of the Fed as the Cookie Monster. It’s giving the markets a sugar rush.
*John Carney does explain the three features of the new policy that mark a departure from past practices. And according to Felix Salmon, the “real innovation here is that the Fed is moving aggressively into the world of words rather than deeds.”