Monetary policy reaches its limits
- Says negative interest rates unlikely to be effective
- Don’t see negative rates situation changing in the next 12-18 months
- Looking at Japan the concern is that negative interest rates in Europe could become a long term problem
- Don’t think we are at a stage where we need a broad fiscal stimulus in Germany
Another voice joining a growing chorus who sing a song of monetary policy reaching its limits. The economic system is breaking and now the move will to see if Gov’t’s can fix them. We are entering an era of fiscal policy moves and a growing number of central banks are recognising/seeking this move.