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Is Bernanke claiming that the Fed creating money out of thin air to buy bonds is not actually printing money?

*Financial Times, by Robin Harding, December 6, 2010

”Bernanke says QE2 could exceed $600bn

Ben Bernanke, chairman of the US Federal Reserve, said that ‘it’s certainly possible’ that the Fed will increase its new round of asset purchases beyond an initial $600bn.

But he made clear it could be decreased as well.  ‘It depends on the efficacy of the programme.  It depends on inflation.  And finally it depends on how the economy looks,’ Mr Bernanke said in an interview with CBS’s 60 Minutes broadcast on Sunday night.

The rare interview with the Fed chairman reflects a push to connect with ordinary Americans in the wake of attacks on the Fed’s new effort to stimulate the economy by buying assets to push down long-term interest rates.  In recent weeks Mr Bernanke has written newspaper opinion pieces and fielded questions from students and business leaders.

Some Republican politicians and economists argue that this new round of quantitative easing will not work and could cause inflation but Mr Bernanke dismissed their concerns.

‘One myth that’s out there is that what we’re doing is printing money.  We’re not printing money.  The amount of currency in circulation is not changing,’ Mr Bernanke said.”

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