We live in such strange times that most people don’t even notice how quickly certain principles that until not long ago appeared fundamental for Western societies are being eroded.
A recent working paper published by the International Monetary Fund looks at the impact of unconventional monetary policy on an open economy, taking Canada’s case as an example.
The paper’s main finding is that unconventional monetary policy by the Canadian central bank has had expansionary effects on the Canadian economy. Continue reading
As the major central banks are slowly retreating from their policy of asset purchases, we will probably witness some of the side effects of this withdrawal.
Warren Buffett famously said that “Only when the tide goes out do you discover who’s been swimming naked.” The tide is going out only slowly, but we are beginning to see, at least in the UK, the damage the ultra loose monetary policy has done.
Inflows into emerging markets continue to dwindle as volatility increases and as the Federal Reserve is winding down its asset purchases, an investor survey from Bank of America Merrill Lynch shows.
Earnings season has started off reasonably well, indicating that the US economy is likely to continue its recovery and hopefully pull the rest of the world along.
Investors are bullish on stocks, recording the biggest overweight position in banks since 2006, a survey of fund managers by Bank of America Merrill Lynch showed on Tuesday.