Global monetary policy has been ultra-easy for many years. Yet it is becoming clear it is now caught in a debt trap of its own making.
Continuing on the current monetary path is ineffective and increasingly dangerous. But any reversal also involves great risks. It follows that the odds of another crisis blowing up continue to rise.
It is to be hoped that the preparations being made by policymakers to manage such a situation are evolving at the same pace. Simply crossing your fingers and praying that it might never happen would seem imprudent, to say the least.
Carrying on with current monetary policy brings with it the threat of inflation….
Read the full article at: https://www.ft.com/content/e1dc1286-0ccb-11e8-bacb-2958fde95e5e
