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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Warnings of a stifling crisis affecting the global economy

    Rocky
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    • Post n°1

    Warnings of a stifling crisis affecting the global economy Empty Warnings of a stifling crisis affecting the global economy

    Post by Rocky Mon 25 Mar 2019, 1:54 am

    Warnings of a stifling crisis affecting the global economy

    Warnings of a stifling crisis affecting the global economy 13913

    The global economy is going through difficult times, with the US economy stagnating, China's failure to revive its economy, the uncertainty of Britain's future, and the Italian budget battle with the European Union. 
    As the Bank of England approaches, the options for Bank of England Governor Mark Carney and his colleagues are low. Interest rates have reached low levels, and quantitative easing, the central bank's purchase of financial assets to increase the amount of funds set up in advance in the economy, has declined. 
    Central banks that have already pulled the global economy out of recession have been unable to provide any solutions, opening the door to the possibility of a significant shift in the way the economic policy makers fight and deal with the next downturn.
    Sixty Jacobson, chief economist at Saxo Bank, was quoted as saying by The Telegraph newspaper, following the announcement of investors' compliance with the Federal Reserve, announcing plans to extend the interest rate freeze and putting an end to quantitative easing, a type of central bank monetary policy. Buy bonds in their declared amount to reduce their profitability and increase the amount of cash in the country's financial system, "monetary policy has died." 
    Experts like William Buiter of Citigroup suggest the concept of collective action to revive the global economy, with spending and taxes playing a bigger role in monetary policies that control the supply of liquidity and borrowing costs.
    Central banks will have to abandon their traditional monetary instruments if they want to recover, which will be slow and fragile, which will keep the growth rate of the old continent at very negative or very low in the best scenarios. 
    One of the ways in which banks have resorted to quantitative easing, ie buying bonds to lower interest rates, has pushed investors into riskier assets. 
    Central banks in the eurozone followed this pattern before rebounding from their crisis in 2017 after the ECB urged that principle, which was reintroduced by bank president Mario Draghi earlier this month. 
    The leader of the opposition British Labor Party, Jeremy Corbin, also proposed the concept of "collective quantitative easing", which is based on the central bank's printing of funds to finance state investment.
    One of the proposed solutions is also the adoption of the "modern monetary theory" that any nation dependent on its national currency will not worry about debt as long as it can print the money to repay it, with one obstacle to inflation. 
    Although this theory has been endorsed by economists around the world in recent decades, an opinion poll conducted by the World Markets Initiative this month pointed to a divergence of local opinion on the merits of the idea, with warnings of excessive inflation and devaluation. 
    In addition, central banks face additional threats to their independence from populism and strong reactions that could erupt if government austerity measures are imposed.


    http://economy-news.net/content.php?id=15938
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