Posted on | July 23, 2012 | 5 Comments
The post title is meant to connect Ben Bernanke with ruinous monetary policy in another country, not as a derogation of the fine people of Zimbabwe, who certainly deserve better than a Bernanke riff.
Financial Times reports that, while the Federal Reserve isn’t addicted to the cocaine of currency inflation, the Fed does seem to think it smells kinda purdy:
The recent slowdown in US economic growth is forcing the Federal Reserve to consider something for which it has always set the bar very high: a third round of quantitative easing.
A decision on whether to launch another round of asset purchases remains in the balance as the central bank wrestles with a complicated economic outlook and uncertainty about the costs and benefits of its easing tools.
In an interview with the Financial Times, John Williams, president of the San Francisco Fed, said that the weak outlook and the extent of downside risks “would argue for further action” but the counter-argument was doubts about tools such as QE3.
Read the whole thing.
In defense of ‘Zimbabwe’ Ben, when you put a junkie on guard at the police evidence vault, you can’t be surprised if there is a lot of nosing about going on. The problem really isn’t Bernanke himself, but rather the system, and the fact that there is bi-partisan reward for playing along.
Update: more at Ace of Spades.