Today’s Dark Lords of Finance
The unprecedented period of coordinated loose monetary policy since the beginning of the financial crisis in 2008 could have large unintended consequences. In particular, institutional investors, such as pension funds, have responded to near-zero interest rates by making riskier investments – leaving them dangerously exposed.
https://prosyn.org/23kiHxq
LONDON – In his Pulitzer-Prize-winning book, Lords of Finance, the economist Liaquat Ahamad tells the story of how four central bankers, driven by staunch adherence to the gold standard, “broke the world” and triggered the Great Depression. Today’s central bankers largely share a new conventional wisdom – about the benefits of loose monetary policy. Are monetary policymakers poised to break the world again?