Central banks are betraying the cause. Why?
12-27-2020 7:57 pmCentral banks seem more and more inclined to reinvent the role they play in the economy. Their boldness is a result of the fact that, faced with the dramatic turn of events during the 2008 crisis they shattered all taboos which has failed to generate the negative impact foreseen by the economic theory. That only confirmed the lesser of the two evils principle. A first historic step into the forbidden area was the large-scale rollout of quantitative easing (QE) by the main central banks with the intent of reigning in the 2008 economic and financial downturn. Purchasing the bonds of their own governments and providing limitless liquidity has prevented a complete freeze of the financial system and a global meltdown. Subsequent attempts at reversing the trend by withdrawing the printed money have been tentative at best due to central bank chairmen’ anxiety over the prospects of a run on the
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