Is the Whole Theory of Secular Stagnation a Hoax?
The Bank for International Settlements says the entire strategy of stimulus by global central banks is based on a false premise
by Ambrose Evans-Pritchard
Telegraph.co.uk
The world’s monetary watchdog has thrown down the gauntlet. It has challenged the twin assumptions of secular stagnation and the global savings glut that have possessed – some would say corrupted – the Western economic elites.
It has implicity indicted the US Federal Reserve and fellow central banks for perverting the machinery of interest policy to conjure demand that may not, in fact, be needed, and ensnaring us in a self-perpetuating “debt-trap” with a diet of ever looser money.
The Bank for International Settlements (BIS) – the temple of monetary orthodoxy in Switzerland – has been waiting for this moment, combing through the archives of economic history to mount an unanswerable assault.
Continue Reading at Telegraph.co.uk…
Source: http://financialsurvivalnetwork.com/2016/01/is-the-whole-theory-of-secular-stagnation-a-hoax/?utm_source=rss&utm_medium=rss&utm_campaign=is-the-whole-theory-of-secular-stagnation-a-hoax
