Latest Issue

QE is reducing—will there be another financial crisis?

By James Kwak  

As the world’s central banks, beginning with the Federal Reserve, ease off their easy money policies, there could be various shocks to financial markets. One mechanism could be increases in interest rates on bonds and corresponding declines in their values; another could be a potential fall in housing prices as mortgage rates increase. On balance, however, I suspect that participants in the financial markets are adequately prepared for these changes because they have been so widely anticipated for so long. Some of the sharpest swings in yields occurred last spring–summer, and as we saw the world didn’t end.

As far…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to

More From Prospect