Monetary policy in the UK and the US is conducted by the Bank of England and the Federal Reserve, respectively. While on the surface, monetary policy appears uniform across all nations; this is far from the truth – with different monetary tools at the disposal of the various Central Banks globally. Such is the caseContinue reading “Monetary Tools”
Category Archives: Monetary Policy
Failure of QE in 2008?
The Global Financial Crisis of 2008 birthed a wave of unorthodox expansionary monetary policy measures. Quantitative easing sought to lower bond yields, pushing financial institutions into riskier assets and thereby increasing aggregate demand; similarly incentivising banks to resume lending, shoring up their balance sheets as bond prices soared. The reality was more complex. Highly leveredContinue reading “Failure of QE in 2008?”
Great Recession: Monetary failure
A calamity that shaped the past decade, the Great Recession marked an end to the Great Moderation, three decades of prosperity. The root causes behind the Financial Crisis and the subsequent Great Recession are complex. A speculative shadow banking sector was supported by reckless Central Banks, bailing out financial institutions and promoting the culture ofContinue reading “Great Recession: Monetary failure”
Stop-go Monetary Failure: 1970s’ Inflation
Inflation. Squeezing millions of households across the UK to the brink. Excessive stimulus by Central Banks globally, particularly the Federal Reserve and the Bank of England, have exacerbated supply side shocks. Economists likening the inflationary shocks of the 1970s are misguided. The Great Moderation, the three decades of economic stability and growth that succeeded theContinue reading “Stop-go Monetary Failure: 1970s’ Inflation”
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