US 'Quantitative Easing' is Fracturing the Global Economy
Bard College Levy Economics Institute Working Paper No. 639
20 Pages Posted: 24 Nov 2010
Date Written: November 23, 2010
The Federal Reserve’s quantitative easing is presented as injecting $600 billion into “the economy.” But instead of getting banks lending to Americans again - households and firms - the money is going abroad, through arbitrage interest-rate speculation, currency speculation, and capital flight. No wonder foreign economies are protesting, as their currencies are being pushed up.
Keywords: Exchange Rates, Asset-Price Inflation, Monetary Policy
JEL Classification: E50, E58, F34, F42, G12
Suggested Citation: Suggested Citation