Want to turn on the water to save the economy with monetary
Market generally think that the the Fed current round of quantitative easing efforts. First, the ultra-low range of the federal funds rate directly to the 2015 mid-long span of time; Secondly, a month to buy $ 40 billion of mortgage-backed securities, two years is $ 960 billion, a large scale; once again, the Fed will continue to perform to sell short-term Treasury bonds to buy long-term bonds "Operation Twist", and continue to be the principal of maturing agency debt and agency mortgage-backed securities reinvestment.
"U.S. economic downturn, the second QE did not solve the problem, now launched third. QE3 launch conducive to stimulate the U.S. economy, and thus promote the recovery of the world economy." Capital Economic and Trade University, Dean of the Institute of Finance Xie Taifeng newspaper interview with reporters, said the United States is the locomotive of the world economy, its GDP accounted for 1/4 of the world's GDP, the U.S. economy is stimulated in order to drive the world economy.
It comes to Japanese, Xie Taifeng think, the Japanese economy has been depressed, plus on factors such as an earthquake more worse, so they use a loose monetary policy to stimulate the economy. It is understood that the September 19, Japan's central bank decided to further additional monetary easing measures, to acquire the assets of the fund will be used to scale from 10 trillion to 80 trillion yen. This is since April this year, the Bank of Japan pushed monetary easing measures. The Bank of Japan also decided as the uncollateralized overnight call rate to continue to be maintained at 0 to 0.1% in real terms to zero interest rates in the inter-bank benchmark interest rate.
To exacerbate world countries inflation
The United States and Japan to stimulate their economies wantonly "quantitative easing", does not know that other countries will bring a lot of trouble. The biggest trouble is causing other countries to put in a lot of the base currency, to aggravate countries inflation.
Xie Taifeng U.S. launch QE3, no doubt additional money, a large number of dollars of imported goods into the country, the dollar a corresponding increase in other countries, these countries central banks must increase the amount of money in circulation to recover these dollars. Can be seen through the chain, the result of additional money in the United States to other countries will also be additional money, and cause the currency depreciation, rising prices, the formation of inflation.
"If the U.S. economy through QE3 successful recovery, demand in the United States will increase U.S. economic growth driven by consumption, the other countries to set their eyes on the United States exports to drive economic growth." Xie Taifeng said, the world economy is now such a pattern. The United States to implement quantitative easing, the country's CPI (consumer price index) tend to rise up, because the dollars flow to other countries in exchange for consumer goods, developing countries therefore commodities to reduce dollar currency.
The risk of inflation in the United States turned to other countries, on the one hand led to the economic growth of these countries, on the other hand also exacerbated inflation in these countries. The yen is one of the world's three major currencies, its quantitative easing will play a role in fueling the world spiraling inflation.
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