
Why monetary policies have not been too loose
The world economy has successfully come out of a serious turn-of-thecentury slowdown. Global economic growth decelerated sharply after the end of the dot-com boom and the fall in equity prices in 2000 and 2001. However, the slowdown was short-lived and the period since 2003 has generally been one of strong growth and rising prosperity.
This happy outcome owes a lot to the decisions by central banks worldwide to ease monetary policies after equity prices fell. They were concerned above all to
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