Federal Reserve Chairman Bernanke: Low Interest Rates in First World Countries Benefit the Global Economy

by Colonel on March 25, 2013

“Federal Reserve Chairman Ben S. Bernanke said low interest rates in advanced nations benefit the world economy while not creating a disruptive diversion of trade through weaker currencies.

“The benefits of monetary accommodation in the advanced economies are not created in any significant way by changes in exchange rates,” Bernanke said today at the London School of Economics. “They come instead from the support for domestic aggregate demand in each country or region,” he said, speaking on a panel with Bank of England Governor Mervyn King.

While the U.S. economy is completing its fourth year of expansion, inflation persists below the Fed’s 2 percent target and growth hasn’t been strong enough to achieve the significant reduction in unemployment that Bernanke says is needed before he begins to withdraw stimulus.

” — Craig Torres, Copyright 2013 Bloomberg LP

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