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 avo