RARELY has a central bank been lambasted so loudly by so many. The Federal Reserve’s decision on November 3rd to start a second round of quantitative easing, or QE—printing money to buy government bonds—gave rise at first to loud protest abroad. A chorus of finance ministers accused America of wilfully pushing the dollar down. Now the Fed is under attack at home, as Republicans accuse it of fuelling asset bubbles and inflation (see article). Several want to narrow the Fed’s dual mandate to curb inflation and maintain full employment to a single goal of price stability. Read the complete article in The Economist here.
No comments:
Post a Comment