Rus News Journal

Experts: FRS can win unemployment, stimulating economy growth

Federal reserve system of the USA can lower a rate of unemployment, stimulating economic growth. About it it is told in the special report of the former adviser of US president George Bush - younger, the economist from Edward Lazeara`s Stanford University and the employee of Bureau on population census of the USA James Splittsera, transfers Reuters. The report is presented within the limits of two-day conference of representatives of the Central banks of the various states of the world in Jackson - Houle.
E.Lazear and J. Splittser have come to a conclusion that the high rate of unemployment in the USA which accompanies recession and epicritic complexities in economy restoration, grows out of change business - cycles, instead of deeper structural problems. It proves to be true conclusions of other researches in which unemployment growth in the USA communicated not with the epicritic phenomena, and with demographic changes and disproportions on a labour market.
in E.Lazeara`s report and J. Splittsera importance of effective intervention FRS in economic policy is underlined. Scale interventions FRS in stock market and other emergency measures, including the discount rate fall, the politicians who have received the name quantitative softening have helped economy growth, affirms as research. We will remind that earlier some representatives of Republican Party of the USA and the head of branches FRS opposed active role FRS in economy. According to critics, the actions FRS supports a high rate of inflation while the positive effect from interventions is not proved.
present recession by anything fundamentally does not differ from previous, besides, that it worse. There are no proofs of that recession has led to rupture on a labour market between demand for the trained shots and the offer in various branches of manufacture - E.Lazear has told.
with E.Lazeara`s report and J. Splittsera the head of Federal reserve bank Sent - Luis James Bullard who believes has disagreed that the economy of the USA endures structural changes.
the further, the the proof will be more obvious that actually in the country there are absolutely other things, namely - basic changes - has underlined J. Bullard.
we Will notice that J. Bullard belongs to opponents of a policy quantitative softening .
we Will remind that on August, 31st of this year head FRS Ben Bernanke has supported two rounds quantitative softening however has warned that the third round will be started only in case of considerable deterioration of an economic situation in the USA. Experts believe that FRS can declare new interventions in stock market in the end 2012.