Mohamed El-Erian of PIMCO was on CNBC to discuss his views in light of recent quantitative measures announced by U.S. Federal Reserve Chairman Ben Bernanke and unintended consequences it will bring to the U.S. economy. He also discusses Europe.
-- Bernanke's action is a historical view which our kids will be reading about in books for its consequences.
-- This is a reverse "Volcker Moment," as fed is giving more preference to the recovery in unemployment and not giving that much weigh to inflation. That is making the unemployment problem embedded in the structure and so is the risk and tolerance associated with inflation.
Source and credit: www.cnbc.com, CNBC
-- Bernanke's action is a historical view which our kids will be reading about in books for its consequences.
-- This is a reverse "Volcker Moment," as fed is giving more preference to the recovery in unemployment and not giving that much weigh to inflation. That is making the unemployment problem embedded in the structure and so is the risk and tolerance associated with inflation.
Source and credit: www.cnbc.com, CNBC
