Eric Rosengren, the head of the Boston Federal Reserve was just on BloombergTV, getting interviewed by Sara Eisen.One of the best parts was where Rosengren was asked if he was worried about the “cost” of all the QE he was doing.
We don’t have his precise language, but the basic answer was ‘I certainly worry, but also worry about the societal cost of high unemployment.’
He then exponded on what it meant that unemployment had a big cost.
This is a good answer that anyone talking about stimulus should be armed with.
Nothing is free, but right now we’re paying a huge cost by having people without work. And the longer that festers, the worsse that gets.
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