Macro Series – Comment – Lowlife: the dynamics of rock bottom bond yields
After a near 40-year bull market, advanced-economy bond yields remain historically low. Inflation has also fallen to subdued, often uncomfortably depressed, levels. The persistent decline in long-term interest rates reflects mutually reinforcing secular forces. Some of t… Become a member to read the rest of this article Username or E-mail Password Remember Me […]
Chart of the month – Monetary policy in advanced economies – January 2020
Central bankers made a significant volte-face in 2019 … but they now retain limited latitude to respond to new negative shocks 1. Slower economic growth and sagging inflation prompted a broad shift towards monetary easing in 2019. The decelerat… Become a member to read the rest of this article
Macro Series – Comment – Overstretched: pushing the boundary of central bank policy
Conventional monetary policy is now all but exhausted in the major economies. Existing unconventional initiatives also appear to be subject to diminishing returns. Leaving the business cycle to its own devices is however not a viable public policy choice. The remaini… Become a member to read the rest of this article