David Jane: Eat, sleep, rave, repeat

Monetary policy reinvented

clock • 3 min read

Markets are stuck in a repeating cycle where central banks introduce more QE any time growth is threatened but, warns David Jane, there has to be a limit to the amount of debt the world economy can sustain

Since the global financial crisis, now over a decade ago, monetary policy worldwide has been reinvented with a new set of tools characterised by the catch all term of ‘QE' - that is, quantitative easing. At their instigation, having been brought up in the era of traditional monetarism, many commentators suggested the likely outcome of money printing would be inflation. Quite the opposite has occurred, however, and the economy and markets now seem to be stuck in a repeating cycle. Eat, sleep, rave, repeat. At its introduction, QE was seen as an emergency measure in which central banks ...

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