Musings On Low Interest Rates And Skewed Asset Prices
Audio Length: 00:51:21
Central banks have been at the forefront of the national responses to the coronavirus recession. This week, we delve into the different approaches and philosophies at play.
It has been nearly ten years of printing money and near-zero interest rates in most developed markets. Thanks to COVID, the phenomenon is now spreading to the emerging world as well. What was envisaged to be an emergency maneuver has now become the status quo.
How has this central bank approach worked? Where did it come short? How should one think about the side effects of Quantitative Easing on the world economy?