Altcoins Talks - Cryptocurrency Forum
Further Discussions => Economics , Sociology & Politics => Topic started by: admin on January 18, 2019, 10:41:28 PM
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Central banks took dramatic and unorthodox steps to prevent economic collapse during the financial crisis. They slashed interest rates, and in the years that followed spent trillions on bonds as part of an effort to spur growth.
One decade later, global central banks are only starting to reverse those moves.
Interest rates in developed economies remain incredibly low; in some places, they're even negative. The Federal Reserve is unloading some of the bonds it bought, but central banks in Europe and Japan have not yet done so.
The question now is whether central banks waited too long to raise rates to more normal levels, leaving them unprepared for the next crisis.
"If we have a recession, I think it's going to be worse than normal," said Kenneth Rogoff, a professor at Harvard University and former chief economist at the International Monetary Fund. "It will be more difficult to respond."
https://edition.cnn.com/2019/01/17/business/central-banks-next-recession/index.html
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Central banks are not ready for the next recession. Some countries have a monetary policy that is not favorable such as high interest. Some central banks allow political meddling from their government which might not be good for the countries economy