Also in Europe there is no unanimity on what course to take. Some people think (especially in Germa

After six years of crisis and three shopping ups shipping programs of assets which put its balance sheet in some unprecedented 4.5 billion dollars, the Federal Reserve US did on Wednesday the announcement that everyone was waiting for: will turn off "the machine to print money" and stop injecting extraordinary amounts of liquidity in the world's largest ups shipping economy.
There were no surprises for the markets - or are expected in the coming days the panic signs they saw when the Fed in 2013 gave the first signs that it would no longer to give this help the economy. In January, Ben Bernanke had outlined a phase out scheme of quantitative monetary expansion policy (quantitative easing), which provided exactly your order for October. Its successor fulfilled the plan to the letter.
Janet Yellen just had to check if the economy responded positively, without unemployment return, and without too low inflation that reinforce the threat of deflation. "Labour market conditions ups shipping improved somewhat, with strong employment gains and a lower unemployment rate," said the statement issued Wednesday by the Fed at the end of the committee meeting that decides the direction of its monetary policy . Janet Yellen is now confident that "the under-utilization of labor resources is gradually decreasing," a prerequisite to continue to assume that the risk of inflation falling well below 2% decreased. At this time the annual inflation in the US is 1.7%.
Still, to reassure the markets, and because it recognizes that there is also the risk of inflation rise much, the Fed also left the assurance that interest rates, currently at zero, will remain low for "a ups shipping period of considerable time. "
The purchase ups shipping program assets that just now is, as it should be, the subject of heated debate among economists. The unprecedented scale of the expansion of the balance operated by the Fed causes has yet to decide which will be the real consequences of what many describe as "the greatest economic ups shipping experiment ever undertaken."
Supporters of the Fed's strategy say that this was the only way to prevent the United States ups shipping entered a scenario similar to the Great Depression of the 30s of last century and only fear that the withdrawal is to be made too soon. Most critics fear that the Fed can not now manage the gradual return to the markets of 4.5 billion euros from its balance sheet, consisting of public and private debt. The risk of a disorderly correction or a return of inflation, they say, is now too high.
It is the moment in the United States are beginning to take stock of the quantitative easing policy, that Europe begins a plan of the same type. The ECB began last week to buy assets in the markets. For now, they are only covered bonds, but will soon pass also be securitized bank loans packages.
The low values of the inflation rate in the euro area, where all countries have a rate that is lower than in the United States, are the reason for the ECB to start working. Mario Draghi says he wants to avoid an excessively low inflation scenario for a long time, which could enhance the risk of deflation.
Also in Europe there is no unanimity on what course to take. Some people think (especially in Germany) that the ECB is going too far. And some say that the central bank is acting already late and with little decision.
The latter call for the reduced strength of the instruments you are using. The ECB announced on Tuesday it has made during the first week, purchases of assets worth 1,700 million euros. This number is far from the EUR billion that Mario Draghi announced the target for the entire purchase ups shipping program.
Moreover, unlike the Federal Reserve, monetary policy is not to rely on any help from fiscal policy for this holiday