Triple Crisis bloggers Kevin Gallagher and Stephany Griffith-Jones published the following opinion article in the Guardian on G-20 leaders’ concerns about US dollar devaluation, in which they propose cooperative capital controls as a potential solution to the QE2 debate.
How the US can fix its QE2 problem
Ben Bernanke has been criticised from different sides and perspectives for quantitative easing. From one side, inflation hawks prefer austerity over expansion. Those who favour expansion and growth have valid concerns that it may not work and, instead, have negative global effects. At the G20, the United States got criticised – rightly – by emerging countries for the negative impact of QE2 on their economies.