Fed ‘stimulus’ chokes indirect finance to SMEs

Ronald Mckinnon

The US recovery from the subprime mortgage crisis of 2008 may seem stronger than that seen in other major economies. But given near-zero interest rates, it lacks lustre. Pundits are particularly concerned with the depressed level of employment.

Eschewing traditional monetary targets, the Federal Reserve has vowed to keep short-term interest rates near zero until the unemployment rate, currently at 7.8%, falls to less than 6.5% of the labour force. A laudable goal politically, no doubt; but the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: