Many investors and economists fear that QE2 will fail and that the U.S. has entered a lengthy period of weak, stop-start growth and chronic but gentle deflation, like Japan has been in for 20 years.
This Special Report by Brian Reading, one of our contributing editors explains why this will not likely happen, in part because U.S. problems and policy responses are very different from Japan’s.
Brian, a friend of many years, is a leading authority on global finance and economics, a former Advisor to the Governor of the Bank of England; Special Advisor to Rt. Hon. Edward Heath, former UK Prime Minister; Economics Editor of The Economist; and founding partner of Lombard Street Research World Service.
He is the author of Japan: The Coming Collapse (Harpercollins, 1992) and The Fourth Reich (Weidenfeld & Nicolson Ltd., 1995).