Posted on 05/24/2013 9:30:31 PM PDT by TexGrill
MUMBAI: Relying excessively on central banks to bring real growth back is "illusory" as low interest rates would not help overcome the structural imbalances plaguing global economies, Singapore's Deputy Prime Minister and Finance Minister Tarman Shanmugaratnam today said.
"It is the fiscal imbalances arising out of negative real interest rates and lack of investments in infrastructure that are holding back the global economy.
"Relying too much and too long on central banks, as has been the case since the 2008 crisis, to bring growth back is an illusory measure," Shanmugaratnam, who is also the finance minister of Singapore, said in his keynote address at the silver jubilee celebrations of Sebi here.
On the need to arrest economic bubbles created by excess liquidity in the system, Shanmugaratnam said: "Politicians should realise that low interest rates will not help overcome the structural imbalances in their economies and that the real challenges to the global economy is how to create jobs and promote real growth."
(Excerpt) Read more at economictimes.indiatimes.com ...
Smart of them. BTW, your last post has no way to give a response. I think you may want to post a comment in order for others to respond.
Of course. I do post a response to all articles I post, so perhaps there was a technical glitch. I love reading the responses too.
Low interest rates punish savers. The whole game is about saving the NY Fed buddies in banking. The country comes second.
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