Policymakers will contain to continue their lonely fight with a new set of ‘unconventional unconventional’ monetary policiesWith most advanced economies experiencing anaemic recoveries from the 2008 financial crisis,their central banks contain been forced to move from conventional monetary policy – reducing policy rates via open-market purchases of short-term government bonds – to a range of unconventional policies. Although the zero nominal (insignificant, trifling) bound on interest rates – previously only a theoretical opportunity – had been reached and zero interest rate policy (ZIRP) had been implemented, growth remained anaemic. So central banks embraced measures that didn’t even exist in their policy toolkit a decade ago. And now they are poised to achieve so again. Related: Bank of Japan launches negative interest rates Related: Negative interest rates: what you need to know Related: ECB cuts interest rates to zero amid fears of fresh economic crash Continue reading...
Source: theguardian.com