I have become passionate about my arguments that monetary policy has become completely ineffective. Yet, central bankers and many investors still act as if monetary policy could save the economy in case it falls off a cliff. The experience of the 2020 crisis should demonstrate that this is not the case anymore. Rate cuts and QE did little to help the economy or stock markets for that matter. What helped was the fiscal stimulus in the form of emergency loans and furlough schemes.
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The evidence is mounting...
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I have become passionate about my arguments that monetary policy has become completely ineffective. Yet, central bankers and many investors still act as if monetary policy could save the economy in case it falls off a cliff. The experience of the 2020 crisis should demonstrate that this is not the case anymore. Rate cuts and QE did little to help the economy or stock markets for that matter. What helped was the fiscal stimulus in the form of emergency loans and furlough schemes.