Will organic private sector growth drivers and budding fiscal policy take the baton from heretofore gushing
central bank policy liquidity?
Not exact matches
Goldman Sachs said in a note last week that factors including weaker economic activity, lower - than - expected headline inflation, continued tightness in
liquidity conditions and subdued global activity and dovish
central banks around the world could push the RBI to ease its
policy.
It will «flexibly use various monetary
policy tools» to keep appropriate
liquidity and reasonable credit growth, the
central bank said in a statement Tuesday after a quarterly committee meeting.
The risk of volatility spikes and
liquidity shortages is rising, and it could get worse with new «quantitative tightening»
policies from
central banks.
Thereby, the increased dependence on
central bank liquidity may have weakened the resilience of markets, making them more prone to a (small) shock, such as an adjustment of market expectations on monetary
policy.
Excessive
liquidity - creation by
central bank policies has created a dangerous
liquidity mismatch.
Monetary
policy is how
central banks manage
liquidity to create economic growth.
But the roots are global as well and at least one of the roots is financial repression which is the major
central bank's
policies over the last nine years of recovery to drop interest rates to zero to buy risk assets, to push investors into risk assets and generate a lot of
liquidity and credit.
Recent
policy actions, including today's rate reduction, coordinated interest rate cuts by
central banks, extraordinary
liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth.
Eliminate Keynesian idiocy, and manage the economy sensibly, balancing the budget as a normal matter, and don't use government or
central bank policy to moderate it, because that only creates
liquidity traps like the one we are in.
Of course, markets have long known that eventually, after years of
central bank liquidity injections, those stimulus measures would need to be unwound - but as we get closer to
policy normalization, Jens Moestrup Rasmussen expects investor nervousness to be on the rise.
Overall, we think global growth, fiscal
policy and organically derived forms of
liquidity will likely more than offset the slow pace of
central bank tightening this year.
But with the Fed's intention to keep its zero - interest rate
policy in place until at least mid-2015 and other major
central banks, including the European Central Bank, flooding their economies with liquidity, that all might
central banks, including the European
Central Bank, flooding their economies with liquidity, that all might
Central Bank, flooding their economies with
liquidity, that all might change.
Recent
policy actions, including today's rate reduction, coordinated interest rate cuts by
central banks, extraordinary
liquidity measures, and official steps to strengthen financial systems, should help over time to improve credit conditions and promote a return to moderate economic growth.
In this issue, we address the economic costs of deflation, the evolution of investment after the financial crisis, the role of debt in the recent drop in oil prices, how financial inclusion affects
central bank policy, and market
liquidity.
Uppermost in investors» minds are considerations like stretched stock valuations, weaning of monetary
policy support from
central banks and emerging market
liquidity strains.
A form of monetary
policy used by
central banks to increase the money supply by buying government securities or other securities from the market to
liquidity.