sir, you are writing allways the same story about the perniciuos effects of the "QE" operations of the fed to reactivate an andante US economic activity. Do you suppose that cheap money ( the opening of the credit spigot by central banks at a low price)can by itself bring about an adequat economic recovery with rising empmoyment. But you never have formulated any advice to US government what poliy she should apply: stimulation or austerity, acting pro-fed or contra-fed; in the last case we should not be astonished consumers follow this advice by increasing their savings( reducing their expenses!. Should you remember the keynesian advice " the boom, not the slump is the right time for austerity"
Herr Sinn forgets an important macro-economic principle of which the germans shall not escape IF: the other euro-zone countries succeed to reduce their commercial and budget deficit and reduce unemployment by applying the german deflationary policy, meaning the will import less & export more , the german export business will crash leading to rising unemployment. And?
sir, your comment: "these reforms (meaning deregulation) sowed the seeds of the financial crisis 2008": easy to say, but difficult to prove; and I don't agree; we should not forget that since 1995 till 2008 the world witnessed a nearly Elysian economic growth which proved to be resilient to economic, political and even terror attacks and inflation , and has been stimulated by " economic and financial deregulation", meaning the abolishing of government regulations to defeat the great depression and during and after the second world war; and Keynes was opposed to government regulations bringing a socialistic state; and I doubt Ms Thatcher would have accepted the advice of Hayek when Hitler was marching in Berlin and in England in 1933 20 % of the people had no jobs!!
Professor: you wrote ' the Fed pursued a low long-term interest rate in the hope of stimulating economic activity ... the extent of the stimulus seems very small. Should you imagine that the opening of a spigot of credit at 0% from the Fed can cure the ills of the actual business slump when at the same time the US government applies the principle of sound finance: reducing government expenditure and rising taxes creating as such a negative business sentiment from the economic agents inciting them to reduce also their expenses; saving during a business slump simply increases misery all round; monetary policy should not be given a task for which it is not designed. also, when I own a 10 year bond at 2% and when the interest rises till 5% , of course the market value of my bond diminishes, but as a long term investor I do not lose anything when cashing at maturity date.
Sir,in your comment you omit to mention that those poor germans have tried with TWO WARS to submit and loot europe; but they did not succeeded!; but they even got billions of Marshall $ instead of having to pay war reparations for the horrendous damages they have caused, with greetings from belgium.