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Policy Article

Evaluating the Federal Reserve's Policy

Authors

  • Wesselbaum
  • D.

Publication Date

Related Topics

Monetary Policy

USA

In November 2010, the Federal Reserve Bank announced to pursue another round of quantitative easing. The rationale for this additional monetary stimulus has been the observation of high and persistent unemployment and the continuation of a declining inflation trend that was bleeding into expectations about the probability of deflation. The author discusses major concerns against QE2, puts them into perspective with analytical and empirical research results and stresses the role of global challenges for U.S. monetary policy.

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