When I hear the phrase “Operation Twist,” I immediately think of a new game that mixes the zapping fun of Operation with the body-bending escapades of Twister. However, this interpretation of the phrase couldn’t be further from reality. Operation Twist is actually a tool that Federal Reserve Chairman Ben Bernanke may implement to help the nation’s economic recovery efforts.
While it would be nice to see a drop in unemployment and a stronger economic recovery, Operation Twist may not make a significant impact, according to 42 economists who were surveyed about the plan. In an article on Bloomberg.com, 61 percent of economists said the plan will fail in its attempts to improve unemployment, and 15 percent predicted that it could actually be harmful to the nation’s recovery.
“It’s better than nothing but it’s obviously not going to be a knockout blow or a game changer for the economy,” said Michael Feroli, chief U.S. economist for JPMorgan Chase & Co. in New York. Source: Bloomberg
Learn more about Operation Twist and how it might work in today’s economy by watching this CNNMoney.com video.