Thursday, December 26, 2013

Janet Yellen thinks the Interest Rate is some sort of blind tool

Janet Yellen thinks the interest rate is some sort of blind tool and too generic to address specific bubbles. And Bernanke compared it to perform neurosurgery with a sledgehammer: if you do too little, there is no effect, if you do more, you kill the patient, you damage the real economy. But the most important argument is, that you would kill the bond market and in the light of a weak economy and low inflation exacerbate a deflationary environment.

 Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
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