"The only way quantitative easing can have a positive impact on economic activity is if the authorities’ purchase of assets from the private sector boosts asset prices, making people feel wealthier and thereby encouraging them to consume more. This is the wealth effect, often referred to by the Fed chairman Bernanke as the portfolio rebalancing effect, but even he has acknowledged that it has a very limited impact...
In a sense, quantitative easing is meant to benefit the wealthy. After all, it can contribute to GDP only by making those with
assets feel wealthier and encouraging them to consume more. "
Here is what I said last week, The conversation continued in the comments section.