- Debt to GDP ratios have kept on rising since the financial crisis in most of the world, in some parts at alarming rates.
- While we wholeheartedly agree with the BIS that this is a dangerous development, we’re less sure about their diagnostic.
- In essence, the BIS argues that the Fed is behind the wrong curve, steeped in Phillips curve thinking.
- But we do not see a compelling case for laying the blame of low interest rates at central banks.
- Nor do we think tightening in a weak economy to contain financial excesses is the right approach.
Is The Fed Is Behind The Wrong Curve?
June 29th, 2017 · No Comments
Tags: Monetary policy