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G20 to discuss quantitative easing

Marketplace Staff Nov 8, 2010
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G20 to discuss quantitative easing

Marketplace Staff Nov 8, 2010
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TEXT OF INTERVEIW

BOB MOON: The G-20 nations meet this week in South Korea. One topic of conversation is likely to be quantitative easing. That’s the Fed’s decision to pump $600 billion into the economy to help improve it. It hasn’t been a popular decision among members of the G20.

Marketplace’s Alisa Roth joins us live from our New York bureau to talk about it. Alisa, President Obama is in India today. Tell us what the conversation about quantitative easing sounded like in New Delhi.

ALISA ROTH: Well, there actually wasn’t much of a conversation. President Obama was asked whether quantitative easing weakened the dollar. And he avoided answering the question. He said the Fed “doesn’t take orders from the White House.” And that it would be inappropriate for him to comment on the policy.

MOON: It seems like a lot of the world is really unhappy about this decision. What’s going on there?

ROTH: A lot of countries are saying it was a bad decision. That in the long run it’s going to do more harm than good. Russia came out saying the G20 should have been consulted before the Fed decided to implement it. China has said that the U.S. didn’t think about what the effect of all this extra liquidity is going to have on emerging markets. Germany’s Angela Merkel has come out strongly against it. And the list goes on.

MOON: So are we seeing any effects of quantitative easing yet?

ROTH: Well, it seems like it. Oil prices were up more than 6 percent last week. To the highest levels in two years. Though they’ve come down a bit since then. That’s all because the dollar got stronger against the Euro. And gold, which is often seen as a hedge against inflation, was also up.

MOON: Alisa Roth in New York, thanks.

ROTH: You’re welcome.

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