Sunday, November 7, 2010

inflation is too low

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Announced the same day the QE2 program, foreign citing Fed Chairman Ben Bernanke in the "Washington Post" wrote the commentary said, "inflation is too low will the economic risks, especially in difficult times when the economic situation in the most extreme cases, low inflation will turn into deflation, which led to long-term economic retardation. "He believes that even without the risk of deflation, low inflation and declining economy means there are a lot of idle capacity, which means that there is support for further growth in employment not lead to overheating of the economy's monetary policy space. Meanwhile, he reiterated that, if inflation increases the speed too fast, the Fed has withdrawn stimulus tool.

One analyst on the "Daily Economic News", told reporters that the U.S. economy did not return to the track before the successful recovery, the Fed will increase the liquidity of the dollar was maintained at a weak low, which will make the market awash with liquidity situation of renewed .

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