One does not need to be a central banker to see the obvious; methinks they are backtracking for an attempted back door exit. in peace
Between 2008 and 2015, central banks pretended that they had fixed the economy.
In 2016, they’re starting to admit that they haven’t fixed much of anything.
The current head of the Bank of England (Mark Carney) said last week:
The global economy risks becoming trapped in a low growth, low inflation, low interest rate equilibrium. For the past seven years, growth has serially disappointed—sometimes spectacularly, as in the depths of the global financial and euro crises; more often than not grindingly as past debts weigh on activity ….
This underperformance is principally the product of weaker potential supply growth in virtually all G20 economies. It is a reminder that demand stimulus on its own can do little to counteract longer-term forces of demographic change [background] and productivity growth.
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