Article;
Stimulus merits in focus as European Central-bank weighs-action
Comment;
QE will increase expected demand and
inflation by improving money-supply... But inflation is not increasing, because
of liquidity-trap (consumer-spending is low) and good supply conditions... QE
will keep on improving supply and in the face of high unemployment and less
demand, major part of Europe... QE will worsen deflation... more downward bias
in prices... fiscal-policy will be more effective because it is more direct...
demand for labor and wages will increase for sure... not dependent on the
private sector... But too much debt... why it happened that the economy is over
leveraged and interest rate are near zero... bad monetary-policy... If debt is
increasing interest rate should increase... QE is making prices go down... And
with every QE people will delay their purchases... People will think prices
will go down more... But, no doubt it can help reduce unemployment but will not
help with deflation... Japan is a good-example...
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