Ben Bernanke says it’s all going according to plan. You see, all it took was buying government bonds with money the Fed conjured into existence.
Buy enough government debt and interest rates go down. This prevents prices from falling and sends investors fleeing from low-yielding government bonds and into stocks.
According to Mr. Bernanke all this can be done — all this new money can be created — without the old money being cheapened. An inflated money supply cures all ills with no downside.
It seems to have worked. Stocks have soared, unemployment has dropped. Americans have started to spend again.
Thursday, March 3, 2011
Was QE2 Money Creation with No Negative Consequences?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment