In my remarks today, I will discuss the rationale for the decision by the Federal Open Market Committee (FOMC) in November to initiate a new program of asset purchases, and I will address some frequently asked questions (FAQs) regarding the program’s economic and financial effects both here and abroad.
“In practice there is a genuine risk that attempts to conduct active stabilisation policy will in themselves lead to cyclical fluctuations”, cf. the former economic advisor Torben Andersen in Udviklingslinier i økonomisk teori - Trends in economic theory - (2000, ed. Chr. Hjorth-Andersen).