Why Did the Fed Commit to Quantitative Easing the Day After the Election?
By Bryan Caplan
The Fed’s new policies are arguably as important as the election itself. How can we explain the timing? There are two main families of hypotheses:
Family #1: The election changed the minds of Bernanke and company.
Family #2: Bernanke and company made up their minds before the election, but waited for the day when their announcement would be maximally overshadowed by other news.
Where does the truth lie? Please show your work.