Monetary Policy By Federal Reserve Will Cause "Double Digit" Inflation
Tue, 21 Apr 2009Martin Feldstein, George F. Baker Professor of Economics at Harvard University and President Emeritus of the National Bureau of Economic Research (NBER) voices his concerns that recent monetary actions by the Federal Reserve will cause severe inflation down the road.The renowned economics professor says that it is possible that the country will see the return of "double digit inflation" of the 1970s. In addition, professor Feldstein expressed his skepticism about the ability of the Federal Reserve to keep any future inflationary pressures in check."It's the monetary policy that worries me. After all what the Fed has done is to allow an explosion of reserves in the commercial banks. A year ago, commercial banks had excess reserves of 3 billion dollars. They now have more than 700 billion dollars, so that once the economy begins to recover - that could be next year, could be late next year, whenever it is - there'll be a strong pressure to convert those reserves into a growth of money and credit, and therefore to start inflationary pressures", says Feldstein.
Channel: News & Politics
Uploaded: November 30, 1999 at 12:00 am
Author: hyperstagflation
Length: 04:36
Rating: 4.0
Views: 878
Video Comments
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insightllc (November 30, 1999 at 12:00 am)
@jjrglobal Martin S. Feldstein, Prof. Econ, Harvard Univ. -- is a member of the Trilateral Commission and knows 33rd degree secret is the 1899 Alaska Earthquake - British Association record No. 333, at Shide. Isle of Wight on September 3 at three o' three.
toiletbowels (November 30, 1999 at 12:00 am)
he's not even saying that there will be hyperinflation.
jjrglobal (November 30, 1999 at 12:00 am)
Do you understand what the Fed does? By manipulating interest rates the Federal Reserve is engaged in central economic planning, which is more destructive in a capitalist society than it would be in a communist society.Moving rates one direction or another, the fed is forecasting what should be done on a regional per bank basis.People send signals through their saving or lack of saving that is vital to the economy.These signals should be what tells the bank the interest rate they should charge. |
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