Diego Parrilla On High Inflation, Anti-Bubbles and the Problem with Stop Losses
Macro Hive Conversations With Bilal Hafeez
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Monetary Policy Without Limits
Central banks and governments are in a situation where every time they're faced with a problem, they tend to resort to the same answers tools. So we've use monetary policies without limits. Once you break certain floors or ceilings, such as zero intrestrate, and you go into negative nominal yields, ah, it's kind of game over. And so in a way, they cannot feed on each other. The fact that siscally we've grown dead to unsustainable levels has forced central banks to reduce te interestyou charge on that,. Both through the actual rate and artificially, by effective doing ce and other measures that control the credit spread as well. This creates this vicious or virtuous cycle initially
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