US/EUeconomy: US Fed’s ‘Flood of Liquidity’ Causes Instability, Stiglitz Says - by Fabiola Moura and Cordell Eddings

Joseph Stiglitz, Nobel Prize-winning economist, comments on the effectiveness of U.S. monetary policy, and its impact on global growth. He made the comments in a roundtable discussion at Columbia University in New York.

“There is lots of instability caused in part by the flood of liquidity from the Fed and the ECB. The irony is that the Fed is creating all this liquidity with the hope that it will revive the U.S. economy. It is doing nothing for the U.S. economy and causing chaos for the rest of the world.”

Note EU-Digest: George Sorros  also spoke about the above issue at Colombia University. For the Sorro speech go to:  http://www.onenewspage.com/news/Business/20101005/15707319/Read-George-Soros-Speech-Where-He-Warned-Of.htm

US economy : For more: Fed’s ‘Flood of Liquidity’ Causes Instability, Stiglitz Says - BusinessWeek