The Economic Benefits of Qualitative Easing

The video discusses the differences between quantitative and qualitative easing, focusing on how each affects the economy. Quantitative easing involves changes in the central bank's balance sheet size, while qualitative easing involves the composition of assets. The discussion highlights the importance of considering multiple economic agents rather than a single entity, as this affects asset price data. The video also addresses market volatility and the role of central banks in smoothing it out, using Japan and Hong Kong as examples.

What is the excess volatility puzzle in relation to stock returns?

How does the cyclically adjusted price earnings ratio relate to economic theories?

What role should central banks play in managing stock volatility according to the discussion?