"US 'Quantitative Easing' Is Fracturing the Global Economy"

Abstract

The Federal Reserve's quantitative easing is presented as injecting $600 billion into "the economy." But instead of getting banks lending to Americans again—households and firms—the money is going abroad, through arbitrage interest-rate speculation, currency speculation, and capital flight. No wonder foreign economies are protesting, as their currencies are being pushed up.Exchange Rates; Asset-price Inflation; Monetary Policy