The US Federal Reserve's expansionary monetary policy has failed to bolster demand and employment growth, while embedding inflation in America's future. Moreover, it has distracted attention from the real problems facing the US economy, which monetary policy is powerless to solve.
PITTSBURGH – Almost all recoveries from recession have included rapid employment growth – until now. Though advanced-country central banks have pursued expansionary monetary policy in the wake of the global economic crisis in an effort to boost demand, job creation has lagged. As a result, workers, increasingly convinced that they will be unable to find employment for a sustained period, are leaving the labor force in droves.
PITTSBURGH – Almost all recoveries from recession have included rapid employment growth – until now. Though advanced-country central banks have pursued expansionary monetary policy in the wake of the global economic crisis in an effort to boost demand, job creation has lagged. As a result, workers, increasingly convinced that they will be unable to find employment for a sustained period, are leaving the labor force in droves.