While administration leaders tout the positive effects of the stimulus, the big guy, Paul Volcker is realistic about the economy, and recognises that it can’t stand on its own two feet.
“This is not the time to take aggressive tightening action, either fiscally or monetary-wise,” said Volcker in an interview in Berlin yesterday, pointing to “high” unemployment. “So I think we have to, as best as we can, maintain the expectation that it will be taken care of in a timely way.”
Why was Volcker in Berlin?
Trying to convince his European counterparts to support some kind of global equivalent of the Volcker rule. After all a US law limiting the abilities of US banks will be toothless if internationals aren’t limited by the same regulations.