asterisk2a + discretionary + hot-money + economic + new   2

Central bankers on the defensive as weird policy becomes even weirder | Business | The Guardian
Growth is tepid, productivity is poor, and inflation is too low: all is not going according to policymakers’ masterplans [...] As far as the OECD is concerned, monetary policy is being forced to take too much of the strain. Its chief economist Catherine Mann made the point that lasting recovery required three things: stimulative monetary policy; activist fiscal policy; and structural reform. The OECD wants the second of these ingredients to be added to the recipe in the form of increased spending on public infrastructure, something it says would more than pay for itself at a time when governments can borrow so cheaply.
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march 2016 by asterisk2a
Beware the Minuses of Negative Interest Rates
Whether sub-zero interest rates actually work is open to debate, however. So says Richard Koo, the chief economist of the Nomura Research Institute. “In my view,” he writes, “the adoption of negative interest rates is an act of desperation born out of despair over the inability of quantitative easing and inflation targeting to produce the desired results.” The failure of the BOJ and the ECB to meet their inflation and growth goals is shared by the Federal Reserve and the Bank of England. None of these central banks understand that their textbook solutions don’t fit the real economy, Koo asserts. [...] And on a more practical level, why corporations sit on record hoards of cash (taxes aside). [<< macro prudential policy ] //&! “When no one is borrowing money, monetary policy is largely useless.” [...] Keynes was right and (Milton) Freidman was wrong. - bit.ly/1Kl07Ri & There is no Confidence Fairy //&! fam.ag/1ogOOiM & bit.ly/1LpJL4W & bit.ly/1VgSjAB & bit.ly/214Icm3 & bit.ly/1Kl228n
secular  stagnation  emerging  middle  class  demographic  bubble  ageing  population  western  world  ZIRP  NIRP  QE  distortion  liquidity  trap  New  Normal  financial  repression  GFC  economic  history  Richard  Koo  consumer  debt  squeezed  middle  class  household  debt  credit  card  debt  car  loan  business  confidence  consumer  confidence  student  loan  debt  student  loan  Super  Cycle  debt  servitude  mortgage  market  asset  bubble  speculative  bubbles  hunt  for  yield  hot-money  equity  bubble  bond  bubble  property  bubble  credit  bubble  BRIC  China  student  debt  disposable  income  discretionary  spending  Frontier  Markets  emerging  market  UK  USA  Europe  Japan  Abenomics  Niall  Ferguson  Paul  Krugman  Joseph  Stiglitz  Gini  coefficient  inequality  income  inequality  income  distribution  income  mobility  wage  stagnation  income  growth  tax  evasion  tax  avoidance  Wall  Street  profit  maximisation  shareholder  value  underinvestment  austerity  productivity  output  gap  public  investment  productive  investment  infrastructure  investment  business  investment  STEM  R&D  competitiveness  Robert  Reich  balance  sheet  recession  deleveraging  debtoverhang  zombie  banks  zombie  corporations  zombie  consumer  macroprudential  policy  miltonfriedman  JohnMaynardKeynes  keynes  Keynesianism  Fiscal  Pact  policy  monetary  policy  Schuldenbremse  unconventional  monetary  policy  QT  Taper  money  supply  money  ve 
february 2016 by asterisk2a

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