Courtesy of Mish.
In a “Trading Floor” interview, Saxo Bank CIO and chief economist Steen Jakobsen, discusses the role of central banks in the global economy with Saxo Bank’s Michael McKenna.
“Central banks can do nothing,” says Jakobsen.
He calls the current central bank low to negative interest rate policies the “New Nothingness”.
What follows is a guest post interview, courtesy of Steen Jakobsen, Michael McKenna, and the Saxo Bank “Trading Floor”.
Original Link : Central Banks Can Do Nothing
In guest post format, I have no block quotes or indents. I offer my comments at the end.
Central Banks Can Do Nothing by Steen Jakobsen
- 2016 has seen a popular reaction against zero-bound policies
- Political elites are struggling to preserve an unfruitful status quo
- ‘The world has become elitist in every way’: Jakobsen
- Political middle has become crowded, stagnant; new spectrum of ideas needed
- Investment in education and research needed; zero rates are a dead end
- Saxo chief economist remains ‘very positive’ overall
In April 2015, Saxo Bank chief economist Steen Jakobsen said that zero rates, zero growth, zero productivity, and zero reforms have left a great many countries adrift in a “new nothingness”.
