The story also talks about how Bernanke is frustrated with China not allowing their currency to appreciate is it likely should, without the regulation. This is one of the things that is bringing down the value of the dollar, which is a tough thing to handle in a somewhat down economy.
Friday, November 19, 2010
Fed sticks with stimulus
The story here is twofold. Ben Bernanke, chairman of the Fed stands by the $600B stimulus package that has received a lot of heat recently. He uses fundamental economic theory to justify his actions, at least Keynesian economics. Someone like Friedman, however, would say that this money would be going to waste and would be unnecessary.
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2 comments:
It will be interesting to see what happens here in the next few months. The fears of super inflation could really hurt the markets.
Zach, I think you misunderstood article's point on the China's matter. It said that many developing countries blasted the U.S for labeling China as a currency manipulator (in which Chinese currency devaluates)WHILE the U.S dollar is also decreasing in value (which imply the U.S itself might as well be a currency manipulator). The dollar declines is a good thing because it boosts export which in turn will help increase jobs and foster economic growth
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