Cheap money won't fix this economy
Balanced
1 Total Slant
Slant this
Slant Totals
0 Left 1 Centered 0 RightTHE FEDERAL Reserve is responding to the stubborn economic slump by creating more money. The central bank will purchase $600 billion in Treasury bonds, in an attempt to drive interest rates even lower. Is this a good idea?Alas, it’s the only tool readily available. But even supporters of the strategy don’t think it will accomplish much, and might cause some harm. The problem is that cheap money doesn’t work very well in an economy such as this one.