Tuesday, September 15, 2015

"Failure to launch" aka "no rate normalization"

From the Wall Street Journal
 

The chart illustrates how central banks have retraced their rate hikes. The challenge to those those espousing the exclusivity of monetary policy --conventional or otherwise-- is how much monetary tightening can the an economy take at any given point in its business cycle, particularly in a world where rates are close to the nominal zero lower bound.

No comments:

Post a Comment