Bernankes silver bullet8230; WILL IT WORK?

HOW DID THE LAST ROUND FARE?

The last round of quantitative easing QE2 in the US by the Fed,involving 600 billion in Treasury-bond purchases over the past eight months,came to an end on June 30 last year. Broadly,in terms of its direct objectives,the QE2 was a success 8211; interest rates on long-term securities and corporate bonds declined,asset values rose,dollar depreciated,and deflation worries abated without igniting undue inflationary pressures. However,in terms of achieving its final outcomes,its impact was less obvious 8211; corporate spending remains depressed,consumer and business confidence continued to be weak,and economic growth and unemployment numbers were dismal.