Before concluding, the speech moves to consider how the size and complexity
of central bank actions in recent years has made some of them dominant forces in financial markets.
Some would argue that the market's normal functions of pricing for risk have been distorted or overwhelmed
by central bank actions.
The valuation concerns really speak to how many investors believe that this rally is all because
of central bank actions.
She was speaking alongside Reserve Bank of India Governor Raghuram Rajan, who has repeatedly warned about the impact
central bank actions in major economies can have on the developing world.
Warren Buffett, chairman and chief executive of conglomerate Berkshire Hathaway, said Monday he would be more likely to buy than to sell IBM shares over the next two years, and that he did not seek to profit from
global central bank actions.
Yes an OPEC cut, which is much less likely, would boost prices as would a significant drop in inventory levels at Cushing, but the reality is it's all
about central bank actions and has been for a while.
Still, McDonald added Monday on CNBC's «Trading Nation» that he «wouldn't put a lot of stock» in the market factoid, preferring instead to look to
central bank actions as well as the presidential election to make his broad - market calls.
David Kotok: Markets are headed higher David Kotok of Cumberland Advisors
says central bank action across the globe will lead to higher asset prices
The speech concludes by reiterating the importance of keeping a strong focus on durably lifting growth prospects and noting that policies
beyond central bank actions need to do more in this regard.
This greater clarity is the result of
European Central Bank actions under Mario Draghi, the preliminary agreement in the US to avert the fiscal cliff, signs of recovery in the US housing sector, the improving prospects of Japan after the recent presidential win of Shinzo Abe, and the stimulative action of central banks worldwide.
«The indebtedness of the world, especially the public indebtedness of countries, I think is the real driver
behind central bank action.
«Therefore, following the dramatic collapse in price, the now
aggressive central bank action and Russia's ability to pay, sovereign [debt] is very attractive in both the dollar and particularly in local currency terms.»
The rest had nothing to do with stimulating the economy — the recovery began months before any shovels hit the ground, on the strength of
unprecedented central bank action: monetary stimulus, not fiscal, was the necessary and sufficient remedy for our ills.
This is of interest for FED watchers because BOE Governor Mervyn King has been a trail blazer for
creative central bank actions and the FOMC may mimic some of the BOE actions to get a boost to a low velocity of money situation.
Market behavior has now fully adapted to the expectation of
pre-emptive central bank action to crisis creating a dangerous self - reflexivity and moral hazard.
It reflects another point of view on Russian default of 1998: it was not economic event rather than consequence of certain manipulation lead to IMF money being stolen
via central bank actions.
Given this, Blu feels the probability of disaster has really gone down, especially since
many central bank actions have been put into place to prevent another storm.
For example, Byelorussia has recently done something similar with its local currency - of course not so many people care because Byelorussia is not a big economy, but understanding general consequences of
such Central bank actions is really important.
And those who try to find a safe harbour in fixed income have been crucified with miniscule interest rates, which are the result of
central bank actions around the world responding to that same seemingly chronic crisis.
«In our view, the
coordinated central bank action to facilitate liquidity through low interest rates and quantitative easing has created an artificial environment.
So while it is beyond argument that
central bank actions in the crisis headed off what could have been a catastrophe, it's another thing to think that monetary policy can easily restore enough demand to fully employ the economy's labour and capital doing what they were doing before the crisis.
There «are enough reasons not to be have been wholly convinced by the (Japanese)
central bank actions and to want to take back some profit on the only trade that dominated forex this year — selling the yen against almost anything,» said Dean Popplewell, chief currency strategist at OANDA in Toronto.
Conducted daily research on the global economy including:
central banking action, monetary policy, deficit spending and geo - political events