Sunday, October 17, 2010

Is America Economy The New Japan

Charles Evans, the president of the Chicago Federal Reserve regional bank, has said that a temporary increase in inflation was one tool to try to kick start the US economy because conventional monetary policy — lowering the short-term interest rate — isn’t working. From Market watch.

Lowering The Short Term Interest Rate - Isnt working?
This has happened before, when Japanese economy tanked in 1990, the BOJ tried to kick start the economy by lowering interest, interest rates were slashed to Zero but Japanese economy never jump started. The same thing is happening to USA now. USA is stack in long term economic stagnation.

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