Gary Shilling: QE2 Won't Stop Deflation

Filed under: Recession, Financial Crisis

It is widely expected that the Fed will announce another round of quantitative easing on Wednesday. It's an attempt, in part, to ward off deflation. But will it work?



Investors have had to make a bet this year over whether they should brace for inflation or deflation. Those who fear inflation invest in Treasury Inflation Protected Securities, or TIPS. The value of TIPS has been rising this year and the Fed's message that inflation has been too low has helped fuel its rise.

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Gary Shilling: QE2 Won't Stop Deflation originally appeared on BloggingStocks on Tue, 02 Nov 2010 17:30:00 EST. Please see our terms for use of feeds.

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