Posted on 03/20/2016 2:34:18 PM PDT by Lorianne
Central banks cannot haul economies out of stagnation on their own, the OECD has warned.
Catherine Mann, chief economist at the Paris-based think-tank, said countries were now “overloaded on monetary policy” as she described the use of negative interest rates as “a reaction of central banks trying to meet the objective of raising inflation and fostering growth alone”.
Ms Mann said banks faced being “squeezed” by the unintended consequences of sub-zero rates in an environment where demand remained subdued.
The OECD has repeatedly warned that fiscal policy and structural reforms are needed to ensure recoveries are self-sustaining.
“In the economies where negative interest rates are most deployed, the credit channel is particularly important, and this is impaired.
Banks in Europe for example have not deleveraged and they as a result are not in a position to effectively lend credit,” said Ms Mann.
“They are also squeezed in the middle between negative interest rates on the one hand and very soft economic activity on the other. So negative interest rates are tough. It’s a tough policy to use.”
(Excerpt) Read more at telegraph.co.uk ...
Our economy will take off when the next Republican president is elected. It crashed when Obama came in and will remain anemic until capitalism-friendly fedguv re-emerges. I don’t know what the rest of the world’s excuse is.
Okay then. Let’ hang us some manipulative banksters.
I don’t believe that will happen.
I think that we are in for a lot more financial trouble no matter who wins the presidential.
Frankly, I don’t know why anyone would want to be presiding over what is likely coming. Whoever it is will get all the blame.
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