Economics 101 says a massive dose of easy money is supposed to be a reliable cure for a sluggish economy. For the first time in decades, the prescription isn’t working, to the rising frustration of central bankers in the U.S. and Europe.Read the rest here.
Four years and more than $2 trillion after the Federal Reserve opened the money spigots following the financial collapse of 2008, the U.S. economy remains stuck in the mud.
Fed Chairman Ben Bernanke, in a widely-watched speech last month in Jackson Hole, Wyo., defended the central bank’s past decisions to churn out record-breaking volumes of cash -- a process known as “quantitative easing” -- saying the policy had prevented a much more painful recession. Bernanke also left little doubt that more money may be coming, as early as this week’s regular Fed policy meeting.