January 09, 2011
The NYT reported that conservatives criticize the Fed’s new round of quantitative easing (QE2) for, “printing money, financing the federal deficit and devaluing the dollar.” The devaluing of the dollar is in fact one of the main goals of QE2, not an unfortunate outcome as the piece later notes. One of the ways in which QE2 would boost the economy is by making U.S. goods more competitive internationally by lowering the value of the dollar.
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