“Fed’s Mysterious Policy: How will we know if it’s working?”
“Few economists expect the jobless rate to fall below 9 percent in 2011; the Fed itself projects a range between 8.9 percent and 9.1 percent. That’s why Alice Rivlin, a former Fed vice chairman, expects little from QE2.
“I think it was conceived as insurance for the recovery,” she said. “I never thought this was going to help a lot; I thought fiscal action was probably more useful. Now that we’ve gotten some fiscal action (with the tax-cut extension package signed by President Barack Obama), it can be regarded as double insurance.”
Rivlin doesn’t buy the idea that rising inflation expectations means that QE2 has already worked.” Read more.
“Fed’s Mysterious Policy: How will we know if it’s working?”
Kevin G. Hall
The Miami Herald, December 22, 2010.
Image by Idea go / FreeDigitalPhotos.net.
