Scott Sumner Makes a Mistake: Monetary Economics

Scott writes:

TheMoneyIllusion » A few of my mistakes: 9. I predicted that aggressive QE would raise long term interest rates, a view which seemed to be refuted by the response on T-bond yields to the March 2009 Fed QE announcement....

I’d like to talk about number 9 for a moment.  Any effective monetary stimulus would be expected to raise long term rates.  We have plenty of examples of that occurring.  My favorite is the surprise stimulus announcement of January 3, 2001, which...