Economic News: Video of Paul Jorion matter how about Alan Greenspan.
Alan Greenspan has recement * write an article in the Financial Times where he disavows the expansionary monetary policy (run printing money) to his successor, Ben Bernanke. He stressed that this increase in money supply does not work and could ultimately devastating. Indeed, most of that money is not used by banks who do not want to risk making the credit, because the unemployment rate is very high, there is a high probability of defaults among borrowers. Alan Greenspan also highlights the risks of inflation or hyper-inflationary monetary policy accommodative of these, which if they were to materialize, could not be contained by central banks because they would not have the necessary tools.
The reaction Paul Jorion for this article seemed very interesting. So here it is:
* Alan Greenspan, chairman of the Federal Reserve (the Fed), from 1987 to 2006
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