What Impact Will Monetary Easing Have on U.S. & Global Economies?

Faced with a disappointingly slow recovery and a painfully high unemployment rate, the U.S. Federal Reserve recently embarked on a second round of “quantitative easing” (QE) —an expression that originates from Japan’s efforts to fight deflation and stagnation a decade ago. With short-term interest rates essentially at zero, QE becomes the primary tool of monetary policy. In the U.S. version of this unconventional monetary policy, the Fed directs its open market operations to managing the size of its balance sheet – specifically, the size of its securities portfolio. In launching “QE2,” the Fed announced its intention to purchase $600 billion in Treasury bills by mid-2011. The Fed’s decision has proved controversial as some analysts doubt that QE ever helped the Japanese economy years ago while others say it doesn’t go far enough. Perceived risks from this policy include rising inflation and a weaker dollar. Our panelists, drawing on their expertise in both the U.S. and Japanese financial sectors, will explain why the Fed has chosen this policy instrument, what impact it will have on the U.S. economy, and whether it will finally bring about a robust global recovery.

Panelists:
Brian Foran, Managing Director, Equity Research Sector Head covering Banks, Nomura Securities International, Inc.
Alicia Ogawa, Senior Advisor, Center on Japanese Economy and Business, Columbia Business School, Adjunct Associate Professor, School of International and Public Affairs, Columbia University
David Resler, Managing Director, Chief Economist U.S., Nomura Securities International, Inc.
Gillian Tett, U.S. Managing Editor for The Financial Times

Moderator:
Sara Eisen, Reporter and co-host of “Bloomberg on the Economy”on Bloomberg Radio

Agenda:
6:00–6:30 PM Registration
6:30–7:30 Panel discussion
7:30–9:00 Reception

Admission: This is a free event open to the public, but you must pre-register for the program. Seating is available on a first come, first served basis.

This event is SOLD OUT.

For information only, please contact the Corporate Program at 212-715-1208.

Co-Sponsored by:
The Women’s Bond Club of New York   

Nomura Holding America Inc.   

Center on Japanese Economy and Business