Low rates and easy central bank policy: A solution turning into a problem?

一月 23, 2020 | By Thomas Garretson, CFA, Mikhial Pasic, CFA


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As central banks turn to the well-worn easy money policy playbook, we ponder the limits to these policies and whether they may cause future problems.

 

After several years that saw central banks on a path back to normality—some raising rates gradually, others holding steady—in 2019 global central banks shifted back into easing mode by cutting interest rates and/or restarting asset purchase programs. And with that, the “hunt for yield” from earlier in the decade is back on.

 

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