Putin Calls Out Bernanke

'â??Look at their trade balance, their debt, and budget. They turn on the printing press and flood the entire dollar zone â?? in other words, the whole world â?? with government bonds. There is no way we will act this way anytime soon. We donâ??t have the luxury of such hooliganism,â? he said.

Even as Putin blamed the U.S. for printing money â?? something for which Russia was criticized during periods of hyperinflation in the 1990s â?? other Russian officials said there is no alternative to the U.S. dollar and declined to discuss cutting the countryâ??s dollar holdings.

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'This isn't hooliganism. This is using monetary policy in textbook ways. As it happens, U.S. monetary policy has a great effect on external economies, which is why Putin calls the whole world the "dollar zone", but let's be clear: those countries want the U.S. to pursue less expansionary monetary policy so they can free-ride on it. It's fine for them to have that preference, and as I've argued before, I think the U.S. should allow some free-riding. But the U.S. government has citizens to satisfy as well, so those countries can't very well expect the U.S. to pursue a contractionary policies while the economy is so weak.'