Quantitative Easing

[Gustaf]

They're almost intent on keeping the funds within the financial sector. Why would they 'spread it out'?

But the point is that it can't do any good in the financial sector ('pushing on a string').  If it were sent outside that sector it would be spent, thus actually having a growth effect.

Apparently no one at the Fed has studied the great Depression or Japan.

Given that the Japanese invented QE and given Bernanke's reserach background...lol.

They don't want to redistribute wealth, only increase liquidity (that is oversimplifying a little bit of course)

[Gustaf]

I'm studying Solow right now.

I'd say empirical evidence actually gives a lot of support for Solow. If you have completely messed up institutions (like Africa) you won't see convergence, but as soon as a country takes care of that they do catch up. We've seen this in many countries, especially in Asia.

It's also important to note that once a country gets into gear they start to catch up. Look at China for instance.