Uncertainty Reaches

Posted February 16th, 2017 by Tony. Comments Off on Uncertainty Reaches.

There is a phrase that says: any past was better. That’s what would appear to be the conclusion of more than 100 central bankers who met in Basle at the BIS meeting. It is that it is true. For monetary policy makers, it is not so simple to maintain with some control, the game between growth and inflation using the magic wand of the interest rate. The current context is much more complex and already not enough to modify such interest rate, but that there are other factors that are beyond the reach of the central bankers. This meeting of more than 100 bankers in Basel, served not only to discuss the context that must address the monetary policy makers, but also to try to find those responsible for the current situation (and thereby shake off a little responsibility for what is to come) so that in the first annual report issued, after unleashed subprime crisis in the mortgage market, the Bank for International Settlements (BIS), with diplomacy, but harshly, be criticized the actions of some central banks (with the Fed to head), that do not set sufficiently high interest rates to prevent an unsustainable credit growth in the early years of this decade (and just now discovered this?), which generated the financial and real estate bubbles that have erupted last year generating large and indeterminate costs for the real economy.

What leftovers at the meeting of central bankers really was pessimism. In this context, the BIS warned that: the upheaval that currently lives in major financial centers is unprecedented in the post-war period. At the moment, monetary policies are displayed little effective before the international rise in the prices of energy and food. To make matters worse, the international financial system has been very struck by the crisis subprime (do or by the first part of it?), which increases the risk of occurrence of new episodes.

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