The Fed’s monetary policies since 2008 have undermined the creation of a growth-producing economic environment

摘要

In June, much to the consternation of financial markets, the Chairman of theudFederal Reserve, Ben Bernanke, warned that the current program ofudQuantitative Easing (QE) would likely to come to an end in 2014. But has thisudmeasure been effective in stimulating recovery? Looking at QE’s record,udSteven Horwitz argues that by paying a small amount of interest on reserveudbalances, the Fed has discouraged banks from lending, leading to a de factoudbailout program. Now, the Fed faces the very real problem of how to avoidudinflation as QE ends and recovery begins.