A Striking Chart of Unemployment

posted in: ECB, Federal Reserve | 0

This chart speaks volumes:


A striking chart which seemingly shows the effectiveness of the FED’s extraordinary stimulus measures which began in early 2009 as opposed to the ineffectiveness of the ECB’s behind-the-curve monetary policy. ¬†While there are many other significant differences between the U.S. and the euro area aside from monetary policy, the timing and steadyness of the decline in the U.S. unemployment rate has to be the biggest affirmation of Ben Bernanke’s term as Federal Reserve Chairman. Meanwhile, Jean-Claude Trichet remained overly concerned about maintaining “price stability” even as there were mounting signs that deflation was a much more serious threat than inflation.