Economist Online
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Wednesday, December 17, 2008

Fed's balance sheet management

In the latest FOMC meeting announcement, the Fed stressed the need of using its balance sheet as one of the tools to stimulate the economy. Let's look at the Fed's balance sheet then in September, October and now.





I bet every central bank facing deflation threat in the world will one way or another print the money. I agree deflation is a bigger threat now, but I am just worried how we will get out of this mess, say 2-5 years from now --- Global inflation???