Herbener on The Fed and QE3

My friend and department chair, Jeffrey Herbener is interviewed by Lee Wishing of Grove City College's Center for Vision and Values about Ben Bernanke's recent announcement that the Federal Reserve will buy $50 billions worth of bonds every month until the economy looks better. You can watch the interview by clicking here.

In this interview Herbener explains the likely economic consequences of such monetary expansion, including distortion of investment, capital malinvestment, hampering necessary economic adjustment, increasing stock market volatility, and increased price inflation.