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Question for monetary policy enthusiasts regarding QE, inflation targeting
Posted on 11/9/12 at 3:01 pm
Posted on 11/9/12 at 3:01 pm
(ie, Benny)
Why are the recent easing/twist measures seen as aggressive or highly accommodative? In January, Bernanke established 2% as his target which isn't terribly high from both a historical and international perspective. From this standpoint, it doesn't even seem very stimulus-intensive at all, but the narrative, which is very much shaped by Bernanke's statements, says otherwise.
Why are the recent easing/twist measures seen as aggressive or highly accommodative? In January, Bernanke established 2% as his target which isn't terribly high from both a historical and international perspective. From this standpoint, it doesn't even seem very stimulus-intensive at all, but the narrative, which is very much shaped by Bernanke's statements, says otherwise.
Posted on 11/9/12 at 3:58 pm to acgeaux129
Targeting 2% inflation? Bernanke wants to avoid deflation, which would make it harder for everyone to keep paying their debts. If the Fed weren't buying up assets right and left, asset prices would fall off a cliff, which would dampen credit growth even further due to a scarcity collateral.
Posted on 11/10/12 at 11:53 am to OFWHAP
quote:
Targeting 2% inflation?
That's the target. Not sure if I worded it incorrectly or what.
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