Here the professor breaks down whether or not QE3 was successful in stimulating the economy. His conclusion is that yes, QE3 helped keep the economy afloat during a time of crisis when it would have otherwise collapsed by the weight of toxic mortgages.
His data goes on to show that during periods of treasury purchases under QE, long-term yields rose as opposed to have fallen. This actually increased the cost of the governments purchases.
He concludes that QE programs pushed up the economic outlook and that in turn decreased the risk premium on other assets. Because of the decreased risk on these 'other' assets, investors became more attracted to higher-yielding assets a.k.a. junk bonds. He also believes that the government failed in part because they were not able to restore full employment to the economy, rather they continued to allow risk premiums to stay elevated and interest rates on safe assets to stay depressed.
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