Great video explaining one perspective on why QE2 is a lousy idea

One semester of econ in 6 entertaining minutes.  A few cute quips from the video in very loose paraphrase:

The Fed is engaged in quantitative easing because they believe there is danger of deflation.  But aren’t food prices higher than a year ago? Yes. Aren’t gasoline prices higher than a year ago?  Yes.  Aren’t health care prices higher than a year ago?  Yes.  Aren’t tuition prices higher than a year ago?  Yes.  Aren’t subway fares higher than a year ago?  Yes.  So where is the deflation? Only in the reputation of the federal reserve.

The authors suggest the Fed has missed a few things before, such as the internet stock bubble, the housing bubble, and the subprime crisis.  Check out the video for a good summary and several laughs.

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