Kevin P. Gallagher
Part of a Triple Crisis series leading up to the Nov. 11-12 G-20 meetings.
Kevin P. Gallagher published the following opinion article on the US Federal Reserve’s approval November 3 of further “quantitative easing” to stimulate the US economy, which has implications for next week’s G-20 meeting of world leaders.
To no one’s surprise, the Federal Open Market Committee has sanctioned another round of quantitative easing – or “QE2”, as it is fashionably referred to. The Fed’s QE2 may not have the desired effect on the US economy, but will certainly accentuate currency tensions in the developing world. So, the US should not be surprised when its proposals to fix global finance are met with stiff resistance at the G20 meeting next week.
To its credit, the US Fed seems to be the sole believer (with any power) in the need for expansionary policies in the United States. The outcome of the US midterm elections has tied the hands of the government to engage in expansionary fiscal policy. The Fed alone has the power to act.
Read the full article at the Guardian.
Read more on Gallagher’s work on capital controls and foreign investment. And follow the debates over G-20 policies in our Spotlight G-20 series, with contributions by Ilene Grabel, Ha-Joon Chang, Jane D’Arista, Sarah Anderson and others.
Interesting!! Thanks!!