‘Japanification’ of monetary policy, OMFIF’s Summer Bulletin
Commentary: ‘Japanification’ of monetary policy
By Neil Williams in London
Rising populism, the exacerbation of economic inequality by quantitative easing, and calls for the reversal of globalisation point to a possible paradigm shift that could prove as forceful as the fall of communism in 1989 or even the establishment of the ‘new world order’ after 1945. Policy-makers appear ill-equipped to deal with this.
Their traditional reaction functions having faltered, central banks are again turning dovish. There is precedent in Japan, which is approaching its 22nd year of policy-loosening without convincing inflation.
Read the full commentary on the website.
The only way seriously to transform the global economy is through urgent policy action. Thankfully many influential policy-makers understand the urgency of climate action. The challenge they face is nothing short of renovating modern capitalism so that it no longer unduly rewards the extraction of fossil fuels. Continuing down the current path is unconscionable. Contributors to this edition of The Bulletin include Sarah Breeden, executive director for international banks supervision at the Bank of England’s Prudential Regulation Authority, and Ma Jun, chair of China’s Green Finance Committee.
Download the summer edition of The Bulletin.