Ruchir Sharma calls on the Fed to drop QE3

Raleigh Addington
editor at Chartwell Speakers

Ruchir Sharma, author of the hit Breakout Nations (2012), today mounted an attack on the Fed’s intended policy of a third round of quantitative easing.

Rather than driving up stock prices, thereby making consumers feel richer and encouraging them to spend more, QE3 is more likely to lead to a bubble in commodity prices. This would curb spending on other goods and limit growth. Moreover, it would hit the poorest Рin both the US and emerging markets Рthe hardest, since a far larger proportion of their income is spent on fuel commodities compared with that of the rich.

The Fed should drop its QE3 plans if it is to avoid the twin evils of dampening growth and increasing inequality.

share

View our related Speakers

Ruchir Sharma Speaker
Ruchir Sharma
Head of Emerging Markets, Morgan Stanley

We use cookies

We use cookies and other tracking technologies to improve your browsing experience on our website, to show you personalized content and targeted ads, to analyze our website traffic, and to understand where our visitors are coming from. By browsing our website, you consent to our use of cookies and other tracking technologies.

Accept Cookies