“So what should officials be doing, aside from telling the truth about the economy?
The Fed has a number of options. It can buy more long-term and private debt; it can push down long-term interest rates by announcing its intention to keep short-term rates low; it can raise its medium-term target for inflation, making it less attractive for businesses to simply sit on their cash. Nobody can be sure how well these measures would work, but it’s better to try something that might not work than to make excuses while workers suffer.”
Contextualize the US dilemna with that fact that China is purposely trying to slow down double digit GDP growth. India is right behind. Brazil is cooling off inflation they are growing so fast and now have an unemployement rate of 6.9 percent.
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