Source: McCulley and Pozsar
1
Private Sector
Deficits
Stimulus
y
Leveraging Deficits 1
"M M"
2
3
Deleveraging Surpluses
4
5
QE1 BoJ →
QE2
7
8
9
10
11
Helic. Money
12
"B B"
QE3
↓
SNB →
BoE →
Surpluses
13
Austerity
Fiscal Policy
6
Sargent Wallace
14
15
SMP
Conventional
16
17
18
OMT →
LTRO
Unconv. Radical Nuclear
Rates "Z B" Monetary Independence
QE ~
FMC
x