Yet More Ways To Possibly Help The Economy

     

       Recently Ben Bernanke, Chairman of the Federal Reserve, said that he is concerned that the economy is not "bouncing back" fast enough, even with all the funds and other things being pumped into it. Although every American knows that this economic crisis is a very serious situation, many do not understand how hard it is to pull a country out of a recession like this one. The FED  and experts have a few ideas for what could successfully and efficiently get the economy and the country out of this recession.
      All of the ideas being purposed are very complex and have quite a few risks, easily said, they are not fool-proof, but they are progress. The FED proposed, this week, that it might purchase more national debt, otherwise  known as quantitative easing. This sounds like a great idea and like it could help, even though many people have no idea what "quantitative easing" really means. It is essentially creating more money and buying more assets. Then, when it has served its purpose, the money is taken back. But in reality they are tons of risks with this approach because it has not been done many times. An even more daunting risk is that when it needs to be undone, if it is done in a wrong way or at a wrong time, it could provide another joint to the economy, that could just undo all the good it just did. Another proposal to further ease the economic problems of the country was inflation. This is normally seen as a bad thing, something which should not be done. However, the FED deems it an acceptable suggestion, because the inflation level is still lower than what they consider to be stable, which it 1.5-2%. The current inflation level is less than 1%. Even though this may seem like a good idea to some, there is a much more significant risk in deflation, which could potentially harm the country. Less risky approaches to helping the economy include the FED buying private assets or lowering the interest rates, even past zero, so they could push more money out into the country.
      I am personally in favor of whichever solution has the least risk, relatively to its possible reward; this seems like a fool-proof plan, to me.