Former US Fed chairman spoke to the BBC last night
– western politicians expected too much of central banks over the past few years
In an interview with the BBC’s Robert Peston he says that the administrations of the US, UK
and Eurozone over-did austerity, with the consequence that the Fed, Bank
of England and European Central Bank were forced to engage in extreme
monetary stimulus – cuts in interest rates to almost zero and massive
money creation through quantitative easing
Bernanke says governments have been too obsessed with making budget cuts
