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Sunday, April 07, 2013

Why Democracy Is In Trouble (1)

 Washington Post: Opinions
 Neil Irwin

...Congress has sat on its hands while the Fed has sought to boost the U.S. economy with tools that are particularly ill-suited. The central bank’s main instruments for boosting the economy — its target for interest rates — has been at rock bottom for four years and counting. It has tried buying trillions of dollars in longer-term securities, which seems to have helped propel the stock market and lower mortgage and other interest rates, but the Fed appears to be getting less bang for every hundred billion bucks it deploys — and the strategy has come at some risk of inflation and new bubbles...


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