The United States and the US Federal Reserve have come under fire today after announcing a fresh round of quantitative easing worth $600bn, in a renewed bid to help kick-start the trundling US economy.
The policy of printing and injecting more physical money into the US economy is designed to improve liquidity in the market and rejuvenate economic growth, after previous stimulus efforts appear to have had little positive impact on economic health.
Leading economic advisers and ministers from China, South Africa, Germany and Brazil have been united in their criticism of the policy, voicing concerns over the impact of the US measures both domestically and on the international stage.
Wolfgang Schaeuble, German finance minister, suggested the policy was “clueless”, while the Vice Foreign Minister of China said the US “owe us some explanation”. With similar sentiments expressed by the Brazilian and South African authorities, they are not alone in their disagreement with US policy.
Some of the anxieties shared by those offering their concern are prompted by fears that the injection of US dollars could adversely impact exports to the US, as a result of a weakening of the currency.
The move comes as the second of its kind, following a cash injection of over $1.75trillion during the height of the economic slump.