Central banks ‘walking a thin line’, BIS economists warn
Luiz Awazu Pereira da Silva and Jochen Schanz note central banks have little room to respond aggressively to surprises
Central banks are “walking a thin line” as they seek to return their economies to normality without triggering a “Minsky moment”, two economists at the Bank for International Settlements warned on February 16.
Deputy general manager Luiz Awazu Pereira da Silva and senior economist Jochen Schanz told a conference that it was unclear whether markets this year would undergo a “healthy correction” – reminding investors not to be complacent – or a more dramatic movement that could create financial
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