Thursday, October 20, 2016

Central Banks Have Reached
Monetary Impotence
"Federal Reserve Chair Janet Yellen and her colleagues are fantasizing about ‘running the economy hot’. As if central banks at zero rates, had that kind of power .. The trouble is that a secular downturn in global demand–caused by debt hangover, years of malinvestment in non-productive assets, aging demographics and low yields–are thwarting hopes and dreams of inflation topping 2%+. This is not the good old days, when plain old cutting rates spurred more consumption. Today low yields are having the opposite effect–causing people to spend less and save more .. The Bank of Canada is struggling with monetary impotence as well."
- Danielle Park
link here to the commentary

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