Tuesday, December 21, 2010

The global economy "financial crisis" when it?.

<P> As unemployment remains severe, with low risk of inflation, the Fed is ready if necessary to take further monetary easing and promoting economic recovery and job creation, so that the inflation rate back to an appropriate level. .</ P> <P> According to reports, the U.S. Federal Reserve Board, said more than 19 officials, the Fed will take further monetary easing. .One official said that quantitative easing will reach 100 billion U.S. dollars per month scale. .The so-called quantitative easing, the Fed is to use various types of bonds and dollars to buy bad assets, its essence is an alternative to printing money argument. .This will lead to further dollar depreciation. .</ P> <P> Although the Fed monetary policy, the internal differences in treatment was unconventional, but the mainstream view seems to agree that further stimulate the U.S. economy still needs policy support, and this is likely achieved by increasing the purchase of Treasury bonds. .</ P> <P> Atlanta Fed President Dennis Branch, said in an interview: "If we want to launch the next round of quantitative easing, the amount must be large enough to play." He said: "According to our previous month .invest 100 billion U.S. dollars of the usual practice, I think this figure of course, in considering the context of the whole project ... ... but if the total amount of only 1,000 U.S. dollars, it is too small. "Prior to this, the Federal Reserve Chairman Ben Bernanke October 15 has been .said that as the unemployment situation remains severe, with low risk of inflation, the Fed is ready if necessary to take further monetary easing and promoting economic recovery and job creation, so that the inflation rate back to an appropriate level. .During the financial crisis the Fed to maintain low interest rates near zero, about 1.7 trillion U.S. dollars to buy mortgage related bonds and Treasury bonds, to reduce the market cost of borrowing. .</ P> <P> U.S. economy needs more stimulus seems to be the Fed's key point, but Fed officials have not yet received the unanimous support of all. .Dallas Fed President Fisher Branch said that while economic growth enough to increase employment opportunities, but to take further monetary easing conditions is still not mature. .Evans, president of the Chicago branch not only to support further monetary easing policy, and repeatedly called for the Fed's price level to achieve goals. .Objectives and requirements of the Federal Reserve to achieve price level suffer from a high inflation, which offset the Fed's inflation rate is lower than normal levels of default under the period. .</ P> <P> further relaxation of monetary policy the Fed is expected to suppress the dollar fell to 10-month low. .Emerging economies are against the influx of hot money within the capital markets. .The People's Bank of China hiked interest rates after 19, the RMB against the U.S. dollar slowed. .</ P> <P> the World Trade Organization Director General Pascal Lamy • 19 said that the recent exchange rate policy issues in some countries on the dispute could jeopardize global trade. .Lamy said the same day, the recent national exchange rate policy issues in the dispute could still threaten global trade. .Although the exchange rate is still only a potential threat, but the threat of trade is probably very dangerous. .If the treatment of exchange rates if countries adopt an uncooperative attitude, then the hard-won economic stability and recovery process may face serious challenges. .</ P> <P> Delta Financial analysts believe the Fed's monetary policy to a certain extent, the dispute led to the current chaos in the exchange rate, has brought the international financial market instability, and potentially creating new asset bubbles .. .The recent trend of U.S. dollar index rebounded more and more drawn into this country in a dispute over exchange rates, the United States seemed to be money diverted to the smoke of war G20 summit meeting in Seoul. .The continuous depreciation of U.S. dollar, causing the relative appreciation of other currencies continued, when a currency war? .</ P>.

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