Friday, January 13, 2006 

The Economist: Danger time for America Mr Bernanke...seems just as keen to slash interest rates when bubbles burst to prevent a downturn. He is likely to continue the current asymmetric policy of never raising interest rates to curb rising asset prices, but always cutting rates after prices fall. This is dangerous as it encourages excessive risk taking and allows the imbalances to grow ever larger, making the eventual correction even worse.
posted by DavidG  @ 10:05 PM 1 comments


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