Sir Andrew Large discusses QE2, Basel and inflation, and says there is a consensus view that QE2 will be ineffective

Sir Andrew Large, former Deputy Governor of the Bank of England, who was Alistair Darling's darling, gave an interview with INSEAD Knowledge.  In it, he talks to Knowledge editor Stuart Pallister about the Fed's quantitative easing efforts, the dollar, inflation and about the calls for a return to the gold standard.

Large's take: 
On QE2:  There is a consensus view that it [QE2] will be ineffective.

On the Dollar:  It seems likely that the currency would be lower than it otherwise would have been had QE2 not have taken place.

On China:  The Chinese are concerned that they will be the recipient of so much of that easing that their currency will appreciate too quickly. If the Yuan adjusts too quickly there will be social unrest in the countryside.

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