Aunt Janet

Who does not love Janet? The Queen of the Short VIX, happily continuing a policy of plowing gargantuan amounts into a system effectively so risk free, 2&20 in growth sectors became much safer than even stashing cash in the old mattress? Taking a satirical approach, there are two theoretical yet common practices where the wonders of econometrics are easily eclipsed by the wonders of Wall Street and those who know how money will flow - faster than water - to its lowest point: tax cuts for the rich / trickle down economics, and inflating the balance sheet of the Fed until even having pins & needles may give you a scare about bursting a bubble of low inflation... And then what?

Nothing is as permanent as temporary balance sheet intervention

Rhetorically, the T.O.Y.S. series asks if the true impact - across the financial system, across what it means for lower income households, where inflation on basic goods is felt significantly more - is truly assessed. Monetary policy can be a weapon, not just a toolbox as an inflation steering mechanism. Measures are aptly described as European big bazookas and wording like whatever it takes may calm markets for a while. But also the US has now engaged in unconventional monetary policy practices since 2008 - for well over a decade - so how how unconventional is this? Who is still hooked on the juice, who cannot live without it any more? And overseeing the different scenarios of what QE of this magnitude and for such a long period of time could lead to, do you really sleep well at night?