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Ghost Dog

(16,881 posts)
43. Call them the “whatever-it-takes” central bankers.
Thu Feb 14, 2013, 12:32 PM
Feb 2013

As the world’s advanced economies grow at half the speed of the pre-crisis years amid persistently high unemployment, governments are turning to a new set of monetary-policy makers who in word -- and they hope deed -- are more aggressive than their predecessors.

A revolution that began with the arrival in November 2011 of Mario Draghi at the European Central Bank now is gathering speed as Canada’s Mark Carney joins the Bank of England and the Bank of Japan awaits a new governor. The shift could culminate a year from now if Federal Reserve Chairman Ben S. Bernanke is succeeded by someone even bolder. The changing of the guard reflects both a need for central banks to offset fiscal paralysis and a bet that monetary policy remains a potent force. At the same time, investors are increasingly weighing the costs and benefits of quantitative easing, while suggesting too much is expected of central banks.

The appointments of activists “reflect the case that economies are still struggling to sustain solid recoveries and there’s pressure from political quarters to be more stimulative,” said Nathan Sheets, a former adviser to Bernanke and now global head of international economics at Citigroup Inc. in New York. “Central banks have stuff in the bag, but it’s largely untried and may generate unwelcome side effects.” ...

... “Central bankers have begun to redefine what their role is, moving away from inflation targeting toward sustaining the health of the financial system, indeed the wider economy,” said Milligan. “New policy makers may bring in new tools, ones which global investors will need to understand quickly.” ... “What we have now is a monetary problem, so it’s time for a monetary solution,” said Gabay, a former Bank of England official. “It’s tough to make monetary policy effective, but it’s the only way.”

The appeal for governments of appointing activists is that they have run out of room to ease fiscal policy and would prefer that central banks go for growth, even if it means a pickup in prices, said Rob Carnell, chief international economist at ING Group NV in London. Central bankers in some countries already are indicating a willingness to tolerate above-target inflation despite their mandates... “Governments think they don’t need to worry about inflation and wouldn’t even mind if some came along, so they’re putting people in who share that cause,” Carnell said. “It’s all about growth.” ...

/... http://www.bloomberg.com/news/2013-02-14/draghi-carney-show-ascent-of-whatever-it-takes-central-bankers.html

No Comment on Cartoon Demeter Feb 2013 #1
The Commerce Clause Tansy_Gold Feb 2013 #5
That toon should go in GD too siligut Feb 2013 #10
I have no comment on your no comment, except to say tclambert Feb 2013 #19
How Congress Could Fix Its Budget Woes, Permanently By Ellen Brown Demeter Feb 2013 #2
‘The deficit chart that should embarrass deficit hawks’ by Ezra Klein Demeter Feb 2013 #4
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Ms. Brown goes straight to the heart of the matter. The message needs to go viral. Ghost Dog Feb 2013 #20
“Emperor’s new clothes” moment of the Great Recession? Ghost Dog Feb 2013 #36
Call them the “whatever-it-takes” central bankers. Ghost Dog Feb 2013 #43
Memo to the President: Actions Speak Louder Than Lofty Speeches Demeter Feb 2013 #3
Fed Joining in Alarm Over Distortion It Enabled: Credit Markets Demeter Feb 2013 #7
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I THINK what they meant was Libor-Rigging Undetectable.... Demeter Feb 2013 #11
Best Jeopardy answer ever... jtuck004 Feb 2013 #9
Happy Valentine's Day, everyone! Hugin Feb 2013 #12
You've got my vote Demeter Feb 2013 #13
Thanks for your support. Hugin Feb 2013 #34
I used to be a Cardinal! I can vote for you! Tansy_Gold Feb 2013 #17
It's good to have someone on the inside. Hugin Feb 2013 #35
My neice who stood up in assembly at St Columba's about 1989 and kickysnana Feb 2013 #21
I appreciate your extensive use of smilies. Hugin Feb 2013 #25
+++ DemReadingDU Feb 2013 #39
I do like the way it sounds in Latin. Ghost Dog Feb 2013 #46
Happy Valentine's day to all the SMW denizens! Roland99 Feb 2013 #44
A nice way to spend the day. Hugin Feb 2013 #45
Euro zone economy falls deeper into recession Demeter Feb 2013 #14
EU exec Olli Rehn says euro states can have more time to cut deficits THAT'S BIG OF HIM Demeter Feb 2013 #15
One graph that says much about America, and our future: the growth in jobs vs. food stamp use Demeter Feb 2013 #16
Ever Since the Stolen Election of 2000, in My Case Demeter Feb 2013 #18
+1 kickysnana Feb 2013 #22
i am sick as a dog xchrom Feb 2013 #23
Nobody should spend Valentine's sick, xchrom! Hugin Feb 2013 #37
Sending you electornic hugs and Demeter Feb 2013 #38
Aw, no :( siligut Feb 2013 #40
Hope you feel better soon DemReadingDU Feb 2013 #41
Take two Beggin' Strips and call me in the morning. Fuddnik Feb 2013 #42
German, French economies shrink xchrom Feb 2013 #24
This message was self-deleted by its author xchrom Feb 2013 #26
irishtimes.com - Last Updated: Thursday, February 7, 2013, 21:26 Ghost Dog Feb 2013 #31
i missed that! nt xchrom Feb 2013 #32
Heinz bought by Warren Buffett's Berkshire Hathaway for $28bn xchrom Feb 2013 #27
Japanese economy contracts for third straight quarter xchrom Feb 2013 #28
India inflation rate dips to three-year low in January xchrom Feb 2013 #29
Manmohan Singh: French fighter jet talks 'going well' xchrom Feb 2013 #30
Thank you, whomever, for my hearts, and all of you bread_and_roses Feb 2013 #33
The GOP Plan to Flush Your State’s Economy Down the Toilet jtuck004 Feb 2013 #47
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