The world economy is probably in a liquidity trap, rendering monetary easing including a recent third round of quantitative easing (QE3) in the US ineffectual, according to research published today (September 25).
The research note by Smithers and Co, an investment consultancy run by economist Andrew Smithers, warned monetary policy is likely to have a limited impact on demand. "The world economy is probably in a liquidity trap. It follows that monetary policy, including further measures of quan
- Argentine finance minister becomes central bank governor as crisis deepens
- Central bankers share vision for ‘business as usual’ big data
- ECB commits to tapering bond purchase programme
- PRA official says financial system must become more cyber-resilient
- Woodford shows finite horizons matter when modelling