According to an article published in the Wall Street Journal today "Lawrence Summers a leading
candidate to be next Fed Chairman, likely would not make a rapid ending of the bond buying
program,that Fed Chairman Bernanke introduced.
Mr Summers has been skeptical of the benefits of Quantative Easing,but also has said he sees few
side effects from this policy.
Both Mr Summers and Janet Yellen his apparent chief rival for the Fed nomination have said the government, in general,should do more to support the current weak economy.
Mr. Summers has been an outspoken advocate of more federal spending now, particularly on infrastructure, to boost growth. His views on monetary policy are more nuanced "there is less efficacy from quantitative easing than is supposed," Mr Summers thoughts are that "if QE won't
candidate to be next Fed Chairman, likely would not make a rapid ending of the bond buying
program,that Fed Chairman Bernanke introduced.
Mr Summers has been skeptical of the benefits of Quantative Easing,but also has said he sees few
side effects from this policy.
Both Mr Summers and Janet Yellen his apparent chief rival for the Fed nomination have said the government, in general,should do more to support the current weak economy.
Mr. Summers has been an outspoken advocate of more federal spending now, particularly on infrastructure, to boost growth. His views on monetary policy are more nuanced "there is less efficacy from quantitative easing than is supposed," Mr Summers thoughts are that "if QE won't
have a large effect on demand, it will not have a large effect on inflation either. So this is not a compelling argument against QE." He believes that "tax-and-spending stimulus would have more impact on the economy than monetary policy".
