Questions About Effects of Quantitative Easing Coming Into Play
From Profit Confidential
January 9, 2013 - 12:01pm
Quantitative easing has taken a toll on the U.S. economy.
The effects are unseen now, but in the long run, they will show. Trillions of dollars in new money has been created to spur growth in the U.S. economy through quantitative easing, but what really has been achieved from it? At the very best, the stock market has gone up—on the other hand, the U.S. dollar has declined in value against other major world currencies, real inflation is rising, and unemployment is still an issue.
As time passes, quantitative easing could be doing more harm than good for the U.S. economy. The Federal Reserve has promised to keep printing $85.0 billion per month until the unemployment rate reaches 6.5% and the inflation expectation for one to two years out is 2.5%. But, despite the approximate $3.0 trillion by which the Fed has expanded its balance sheet since the credit crisis began, and despite the $6....
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