deflationary spiral

Should the Fed Worry About Unemployment?

When the economic gurus at the Fed move the levers of U.S. monetary policy, they do so with two often-conflicting goals in mind: promoting maximum employment and keeping prices stable. Many critics are now arguing that that Fed should ignore unemployment and focus solely on prices.

QE2, Day One: Fed Buys $7.3 Billion in Treasuries

Fed Completes First Day oThe Federal Reserve bought $7.3 billion worth of U.S. Treasuries Friday as it started a second round of quantitative easing meant to stimulate the nation's economy, media reports indicate. The plan, designed to boost job creation and prevent deflation, has been highly criticized. f QE2 Treasuries Purchases

Why Asian Nations Hate QE2, and What They Should Do

As the G-20 meets in South Korea, many world leaders have stepped up their complaints about the Fed's $600 billion quantitative easing program, as well as the rapid flow of capital into emerging markets. Some countries are installing capital controls in response, but those won't be enough, says global finance expert Peter Cohan.

What Will the Fed Do With So-So Results?

The recent stream of modestly positive economic reports means the Fed probably won't take any further action to stimulate the economy at its meeting on Tuesday. But nobody is calling the economy healthy yet, and the debate over what the Fed should do next has the FOMC deeply divided.

Japan Gets a Boost From Exports

Mired in deflation and stagnant for decades, Japan has been the economic basket case of the developed world, a cautionary example of malaise run amuck. But because it's export-oriented, the world's third-largest economy is getting an unexpected lift from roaring growth

Just Enough Inflation? Core CPI Up 0.2% in June

The Consumer Price Index fell 0.1% in June, but the core rate rose a higher-than-expected 0.2%, which suggests that the slowing U.S. economic recovery has lowered inflation. But it hasn't triggered deflation -- at least not yet.