By Nouriel Roubini Monetary policy has become increasingly unconventional in the last six years, with central banks implementing zero-interest-rate policies, quantitative easing, credit easing, forward guidance, and unlimited exchange-rate intervention. But now we have come to the most unconventional policy tool of them all: negative nominal interest rates. Such rates currently prevail in the eurozone, Switzerland, … Continue reading
Global debt has soared by $57 trillion since the outbreak of the financial crisis in 2007, with the debt to GDP ratio jumping to above 500 percent in Japan. This raises questions about financial stability and poses a threat of another crisis. “After the 2008 financial crisis and the longest and deepest global recession since … Continue reading
By Plamen Iossifov and Jiri Podpiera Inflation has been falling sharply across Europe since 2012 (see Charts 1 and 2). Across Central and Eastern Europe (CEE), inflation expectations have also drifted down especially among countries who peg their currencies to the euro (Bulgaria, Croatia and Lithuania, which adopted the euro on January 1, 2015), but also … Continue reading