http://finance.yahoo.com/news/eyes-fed-ecb-other-bank-230353763.html
The European Central Bank (ECB) recently released a rather larger stimulus package this past week to help boost their own economy. This stimulus however has begun to effect potential policies here in the US. This stimulus effects the Feds plan to raise interest rates by the middle of this year. A policy that is out of sink with what is going on in the rest of the world. Even though the US seems to becoming out of economic turmoil there is still a stong sense of Global Central Policies. The raising of interest rates in the US could effect foreign economies who are putting in to place expansionary policies. This would make commodity prices even higher and add to the threat of global deflation. I think the Fed needs to take into account GCP and how changes will effect other countries before making any new policies.
4 comments:
I agree with you. I think that instead of the US focusing so much attention on raising interest rates that they need to pay attention to GCP. I think that although America is still not where we should be, that we are in a stable position and we should not do something that may threaten that stability.
I agree with both Courtney and Jake. While raising interest rates may help the United States, it would make it much harder to engage in business with other countries. I also agree with Courtney, in that, although the US is not in the best place economically, we are still relatively stable and should not do something that would risk our economic stability.
I also agree with everyone. I think that the Fed of the United States must consider other countries and other central banks policies. With markets becoming more globalized then ever before, the significance of being cognizant of other policies and keeping them uniform across the globe could greatly benefit all.
I think the US should be aware of international policies. However, I don't think we should necessarily change our policies based of others. The Fed plans to raise interest could be very helpful for our economy and gives us the spark we need.
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