"Most observers regard unconventional monetary policies such as quantitative
easing (QE) as necessary to jump-start growth in today's anemic economies. But
questions about the effectiveness and risks of QE have begun to multiply as
well. In particular, 10 potential costs associated with such policies merit
attention.
First, while a purely "Austrian" response (that
is, austerity) to bursting asset and credit bubbles may lead to a depression, QE
policies that postpone the necessary private- and public-sector deleveraging for
too long may create an army of zombies: zombie financial institutions, zombie
households and firms, and, in the end, zombie governments. So, somewhere between
the Austrian and Keynesian extremes, QE needs to be phased out over time. -
excerpt from an article in The Guardia..."
at http://nourielroubini.blogspot.com/2013/03/nouriel-roubini-we-risk-qe-wars-and.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NourielRoubiniBlog+%28Nouriel+Roubini+Blog%29
No comments:
Post a Comment