Monetary morphs into fiscal: the Fed's great adventure

• Autores: Anthony F. Herbst
• Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 4, Nº. 2, 2015, págs. 79-86
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • This paper focuses on some oft-neglected effects of the post 2008 US monetary policy and the revised way of estimating inflation by the Bureau of Labor Statistics. The Quantitative Easing monetary policy since the Lehman crisis in fact carries the implication of a fiscal measure in the form of a shadow tax. The effect of this shadow tax can be exacerbated by any underbiased inflation data. These factors can help explain why such monetary measures have not brought growth to the real sector and why the economic recovery has been weak.