Monday October 26, 2020

Making friends with an old enemy

Policy makers are now more concerned with generating inflation than with curbing it

30th October, 2010

Two weeks ago in Boston, Ben Bernanke, the chairman of the US Federal Reserve, gave a speech which analysts saw as the clearest indicator yet that policymakers in the US would do whatever it took to maintain the economy’s momentum.

In short, it pointed to another round of what is labelled quantitative easing, as the Fed pumps more liquidity into the financial system.

But an element of his speech which hasn’t received the...

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