The Free Exchange blog at the Economist illustrates the complexity in trying to understand the the formulations of the Fed Reserve’s policy.

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Two data points today help illustrate. First, the European Central Bank conducted its second three-year Long Term Refinancing Operation. (You can read my colleague’s take here.) Second, Ben Bernanke, chairman of the Federal Reserve testified to the House Financial Services Committee, and hinted that more quantitative easing – the purchase of bonds by printing money – was a bit less likely. He called the recovery “uneven and modest by historical standards” but that was better than “frustratingly slow,” the description he used at the start of this month.

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