Monday, September 28, 2009
President of the World Bank Slams the Fed (and Other Central Banks) For Embracing Bubbles and Then Trying to Clean Up the Mess Once They Burst
World Bank President Robert Zoellick says:
Central banks [including the Fed] failed to address risks building in the new economy. They seemingly mastered product price inflation in the 1980s, but most decided that asset price bubbles were difficult to identify and to restrain with monetary policy. They argued that damage to the 'real economy' of jobs, production, savings, and consumption could be contained once bubbles burst, through aggressive easing of interest rates. They turned out to be wrong.This is in line with criticism of the Fed of BIS and many independent economists and financial experts.
2 comments:
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thanks world bank for watching the bubble form and then deciding to oppose the way our banks did business. Im sure World Bank had none of their hands in our economy and made 0 on the bs that the fed got us in?????
ReplyDeleteHmmm. Wasn't Wolfy president of the WB from June 2005 to June 2007, just when all this was becoming apparent?
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