Mirtchev, A. (2011, August 31). The Fed’s have-it-both-ways policy. The Economist.
In response to the Economist’s debate following Federal Reserve Chairman Bernanke’s speech at the annual meeting of central bankers in Jackson Hole, Wyoming, Dr. Alexander Mirtchev considers that governments worldwide, including the US Fed, should take a long and hard look at the inflationary impact of the foretold policy responses of the day – i.e., QE3 – to flagging economic recovery. Mirtchev, President of the Royal United Services Institute for Defense and Security Studies (RUSI) International, noted in the Economist that the majority of measures currently under consideration seem to be of a stop-gap nature, rather than embodying the necessary set of radical reconsiderations aiming to address the structural weaknesses that are imperiling the global economy. Mainly, the responses that have emerged so far are exactly that – responses. For now, they eschew addressing the economic security risk of creating inflationary pressure in a period of stagnating growth, which in the mid-term could render them rather insufficient in the eyes of the market. A more comprehensive approach appears appropriate.