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Too much money would provoke a new round of inflation and perhaps yet another asset bubble.
The key is to prevent this first round of inflation from leading to another and another.
That policy helped rekindle economic growth but sowed the seeds of a new round of inflation that has grown worse over the past year.
The question now is whether the Fed is already too late, and whether it has enough power to stabilize the markets without starting a new round of inflation.
But the strategy of easing credit to stimulate the economy could bring a new round of inflation by the middle of the year.
He clashed with Viktor Gerashchenko, the chairman of the Central Bank, whose loose-money policies helped lead Russia into a debilitating round of inflation.
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Caroline Flint, shadow energy secretary, called on the companies to "come clean about why they are imposing yet another round of inflation-busting price rises this winter, when they are already making huge profits".
How would the company negotiate wage contracts when imported goods (that is, workers' most favored goods) suddenly rise in price, kicking off new rounds of inflation and fuelling local rushes into real estate and new bubbles?
Despite signs of sluggish growth, consumer prices are climbing faster than the central bankers would like to see, and the cost of oil, which has contributed to previous rounds of inflation, has surged.
How would the company negotiate wage contracts when imported goods (that is, workers' most favored goods) suddenly rise in price, kicking off new rounds of inflation and fuelling local rushes into real estate and new bubbles?
The current round of European inflation began with the social revolution that took place in France in May and June of 1968.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com