After two years of quantitative easing, central banks have begun to shrink their balance sheets, and liquidity seems to have vanished in the space of just a few months – revealing acute financial-system vulnerabilities. Read More Here
Escaping the liquidity trap means engineering a dramatic rise in expectations for future demand growth. It means a clear departure from past practice: a regime change. And whether the tool used to engineer the shift in expectations is monetary or fiscal, it cannot occur without strong political support. Read Here – The Economist
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