The Economist (November 9)
“The biggest problem facing the rich world’s central banks today is that inflation is too low. The average inflation rate in the mostly rich-world OECD is 1.5%, down from 2.2% in 2012 and well below central banks’ official targets (typically 2% or just under)…. None of this means that inflation will not one day be a risk. But it is not today’s problem.”
Tags: Central banks, Inflation rate, OECD, Official targets, Risk
Euromoney (May Issue)
“The central bank-driven global money-go-round has been turning ever faster since last summer. Now the Bank of Japan has turbo-charged it. So far, investors are enjoying the ride. But a bout of nausea cannot be ruled out.”
Tags: Bank of Japan, Central banks, Expansion, Investors, Monetary policy, Outlook, Risk
The Economist (February 23)
“With short-term interest rates still stuck near zero and their balance-sheets stuffed with government bonds, the central banks of America, Britain and Japan are experimenting with a shift in approach: coupling monetary action with commitments designed to alter the public’s expectations of interest rates, inflation and the economy…. A more doveish stance would entail tolerating higher inflation, at least temporarily, in pursuit of higher output.” But there is “a question-mark over what this wave of central-bank experimentation can achieve: since bond yields are already so low, the marginal return to coaxing them even lower may be scant. For now, though, buoyant stockmarkets are giving the activists the thumbs-up.”
Tags: Bonds, Central banks, Inflation, Interest rates, Japan, Output, Stockmarkets, U.S., UK, Yields