Forget Inflation - Prof Hans-Werner Sinn
Apr 15th, 2009 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
To paraphrase Winston Churchill, never have so many billions of dollars been pumped out by so many governments and central banks. The United States government is pumping US$789 billion into its economy, Europe $255 billion, and China $587 billion. The US Federal Reserve increased its stock of base money in 2008 by 97 percent, the European Central Bank by 37 percent. The Federal funds rate in the US is practically zero, and the European Central Bank's main refinancing rate, already at an all-time low of 1.25 percent, will likely fall further in the coming months.