Analysts say markets are worried that Summers, who has said
little about monetary policy but has sounded a skeptical note in the past about the impact of some of the Fed's efforts, might hit the brakes faster.
Finally, I have said relatively
little about monetary policy today.
Not exact matches
President Mario Draghi gave
little indication
about the next steps for
monetary policy in the euro zone during a speech on Wednesday ahead of a key meeting between central bankers.
Carney - who has never been shy
about inflicting «unconventional
monetary policies» on the economy and its denizens - went on to slam negative interest rates just when the chief negative - interest - rate perpetrators, let's call them NIRPs, were hoping for a
little love and solidarity.
I'm always dismayed, for example, by how confidently analyts and economists talk
about the relationship between
monetary policy and economic outcomes, when the fact is that the level of interest rates, changes in interest rates, and changes in the
monetary base provide very
little additional forecasting power for GDP, over and above forecasts based on lagged changes in GDP itself.
Yes, the credit
policies of other nations were a factor, but it does not excuse the mismanagement of
monetary policy by Greenspan, where private and public debts were allowed to build up to record high ratios of GDP, threatening the health of the financial system, and the Fed did
little to nothing
about it.