"In sum, the advanced industrial economies are currently pursuing appropriately expansionary policies to help support recovery and price stability in their own countries,"
- Ben Bernanke, the Fed Chairman
The Fed Chairman Ben Bernanke, speaking at the London School of Economics on Monday, said that the central bank's highly expansionary monetary policy is beneficial not only for the U.S recovery, but also for the world economy.
However, as the U.S. is completing the fourth year of expansion, economic growth remains sluggish, what impedes achieving sustainable unemployment rate, while inflation stays below the Fed's 2% goal.
"The benefits of monetary accommodation in the advanced economies are not created in any significant way by changes in exchange rates; they come instead from the support for domestic aggregate demand in each country or region," said Ben Bernake.
"In sum, the advanced industrial economies are currently pursuing appropriately expansionary policies to help support recovery and price stability in their own countries," he added.
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