Federal Reserve in Uncharted Waters

Yilmaz Akyüz

According to Triple Crisis contributor Yilmaz Akyüz, the U.S. Federal Reserve and, by extension, the entire global economy are in uncharted waters, as the Fed begins to back off the expansionary monetary policy it has followed since 2008. Dr. Akyüz’s comments in conversation with Real News Network producer Lynn Fries, were delivered after a UN workshop in Geneva. He argued that the United States’ zero interest rate policies, and China’s high-investment policies, which have buoyed up world demand, are both “unsustainable.” Meanwhile, income inequality and the declining labor share of total income has put the world economy in a serious “underconsumption” bind. “And income distribution,” he notes, “has gotten much worse during the crisis … and therefore we have [an even bigger] consumption gap.” – Eds.


Triple Crisis welcomes your comments. Please share your thoughts below.

4 Responses to “Federal Reserve in Uncharted Waters”

  1. Federal Reserve in Uncharted WatersSurvive Food Crisis – Do you need to read it? | Survive Food Crisis - Do you need to read it? says:
    November 8, 2013 at 8:03 pm

    […] TripleCrisis This entry was posted in Survive Food Crisis and tagged Federal, Reserve, Uncharted, Waters. Bookmark the permalink. ← Global Finance Celebrates at the Gates of Paradise […]

  2. Squarely Rooted says:
    November 11, 2013 at 12:48 pm

    This is exactly wrong. Monetary policy has been too tight since the crisis began, and in fact is a key proximate cause for the crisis and the central reason stagnation persists.

  3. Why Is the 2008 Crisis Taking So Long to Resolve? (Part 1) | HESA.us says:
    February 25, 2014 at 12:17 am

    […] Lynn Fries of The Real News Network interviews regular Triple Crisis contributor Yilmaz Akyüz about the intractability of the current global economic crisis. Akyüz traces this to “underconsumption,” which he attributes to the falling wage share of GDP in many countries. This is the first in a two-part series. You can see a related The Real News Network interview with Akyüz here. […]

  4. Why Is the 2008 Crisis Taking So Long to Resolve? (Part 1)Survive Food Crisis – Do you need to read it? | Survive Food Crisis - Do you need to read it? says:
    February 25, 2014 at 4:02 am

    […] Lynn Fries of The Real News Network interviews regular Triple Crisis contributor Yilmaz Akyüz about the intractability of the current global economic crisis. Akyüz traces this to “underconsumption,” which he attributes to the falling wage share of GDP in many countries. This is the first in a two-part series. You can see a related The Real News Network interview with Akyüz here. […]