Before heading to meet fellow world leaders in Seoul, South Korea, Merkel warned that the recent decision by the US Federal Reserve to pump $600 billion to prop up America’s fragile economy could have unintended consequences."Nobody has an interest in creating new bubbles. Instead, we must see to it that growth in the global economy this year is more sustainable and enduring that we had a few years ago," Merkel told reporters.
Critics argue that the Fed's "quantitative easing" stimulus amounts to an effective dollar devaluation, and has the potential to trigger a 1930s-style trade war if other countries respond in kind.
Note EU-Digest: It is interesting to note that all EU countries which copied the US economic philosophy, which basically comes down to "laissez fair economics", with as little controls as possible, are experiencing serious economic problems In Europe these include many of the former Eastern bloc countries, Britain, Ireland. Spain, and to a certain extend Italy.
For more: Merkel slams US ahead of G20 summit - The Local
No comments:
Post a Comment