Challenges ahead for US economy

Many people may not know the name Ben Bernanke. But at the end of January he becomes the world’s most powerful central banker when he succeeds the respected head of the US Federal Reserve, Alan Greenspan.

He is a leading advocate of “inflation targeting”, the idea that central banks should set a target for inflation – in the UK it is 2% – and stick to it.

Many economists argue that only a devaluation of the dollar – or revaluation of other currencies – can help the economy adjust in the long term.

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