A World of Cheap Money
The Federal Reserve is making a better job of it than the European Central Bank
April 6, 2013
THE LOW-RATE WORLD was not meant to last. In 2008-09, when central banks slashed short-term rates close to zero and started buying bonds to push down longer-term rates, everyone assumed these extraordinary measures would soon be unwound as economies recovered.
But the extraordinary has become the norm. America’s Federal Reserve is still printing money to buy bonds and has made it clear that it will not raise short-term rates at least until unemployment, now close to 8% , falls to 6.5%. Read More A World of Cheap Money