QE2 may help big businesses, but small firms won't benefit

12/1/2010 | Bloomberg Businessweek

The Federal Reserve's latest quantitative-easing actions to stimulate the economy, known as QE2, won't help small businesses and will widen the gap between big and small companies, writes Scott Shane. He noted that few small businesses would benefit from the resulting export stimulus and lower interest rates for bonds, and QE2 isn't likely to get banks to lend more. "The solution to the lack of recovery in the small business sector lies in fiscal, not monetary, policy," Shane wrote.

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