The Failure of Monetary Policy
http://www.morganstanley.com/GEFdata/digests/20060522-mon.html#anchor0
I have a lot of faith in the fact that this period of time with be of great interest to economic historians. Steve Roach is 110% on track when he identifies the fundamental failing of central bank monetary policy in his most recent article.
Inflation targeting hasn't worked and the CPI has not been an accurate measure of monetary expansion. This thinking will not survive past the coming recession.
I have a lot of faith in the fact that this period of time with be of great interest to economic historians. Steve Roach is 110% on track when he identifies the fundamental failing of central bank monetary policy in his most recent article.
Inflation targeting hasn't worked and the CPI has not been an accurate measure of monetary expansion. This thinking will not survive past the coming recession.
posted by Peter at 9:57 am
1 Comments:
How Japan Sank the Market
http://www.thestreet.com/_pbear/comment/investing/10287575.html
"What the Bank of Japan has done is set off a global resetting of investors' risk tolerance. With Japanese interest rates so low and Japanese cash so abundant, speculators, traders and investors have been more and more willing in the last few years to take on risk at increasingly low premiums."
I certainly don't think Japan has "sank" the market, it may be "sinking" it. This bear will be growing for a couple of years until equity markets reach anywhere near a floor trading range.
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