Not exact matches
The
policy response by inflation - targeting
central banks has been very rapid as the crisis has unfolded, notwithstanding the
fact that in some cases, the current level of inflation was above the target range.
The U.S. media are silent about the most important topic
policy makers are discussing here (and I suspect in Asia too): how to protect their countries from three inter-related dynamics: (1) the surplus dollars pouring into the rest of the world for yet further financial speculation and corporate takeovers; (2) the
fact that
central banks are obliged to recycle these dollar inflows to buy U.S. Treasury bonds to finance the federal U.S. budget...
It is in
fact the case that the amount of currency in circulation has not been affected by any of these
policies (such as quantitative easing by major
central banks).
The
fact that Federal Reserve
policy statements are pored over by investors was driven home once again when the removal of two words from the prior statement set off an intense debate over the
central bank's view of risks to the economy.
Years of aggressive
central bank policies haven't resulted in the type of accelerated global growth one might expect, so Brooks Ritchey, Senior Managing Director at K2 Advisors, Franklin Templeton Solutions, wonders if there is an alternate universe where that is in
fact the case.
As of late, the heads of two of the largest
central banks in the world (the Fed and the ECB) have pointed to the
fact that it is up to the politicians to enact
policy to spur economic growth.