By Gerhardt (Gary) P. Herbert, CFA
Last week, I explained how Federal Reserve (Fed) balance sheet expansion could send 10-year Treasury yields toward zero over the next few years. While that notion may seem far-fetched to some, my point was to highlight why quantitative easing isn't a panacea for trying to safeguard economic growth from a downturn. The same holds true for fiscal stimulus or more abstract principles like Modern Monetary Theory ((MMT)). With that in mind, let's set out to debunk their growing popularity in the U.S.
Conventional economic wisdom is that monetary policy