Market Pressure on Central Banks Might Shatter Advanced Economies …“Central banks are playing catch up with what the market has known for some time — that global growth is slowing,”
SputnikNews.com
26.10.2015
Amid the lingering disinflation and mediocre growth in the US, the Eurozone and Japan, global financial enterprises are pressuring central banks to further loosen their respective monetary policies in order to boost their own commercial performance.
Kristian Rouz — Ahead of this week’s key policy meetings of the US Federal Reserve and the Bank of Japan (BoJ), disinflationary pressures in the US, the Eurozone and Japan have stirred speculation of a possible expansion in the existing monetary stimulus programs, undertaken by Frankfurt and Tokyo.
Amid the lingering lack of clarity on the US Fed’s further policy actions, mainland China’s aggressive stimulus, and the European Central Bank (ECB) head Mario Draghi’s latest commentary on the possible expansion of bond-buying, the global financials, including multinational banking corporations, have every right to expect higher returns from their open market operations.
The architecture of international finance supports excessive financialization of capital, and in such circumstances, measures of monetary policy alone are insufficient to accelerate inflation and address structural weakness in the advanced economies. The central banks-provided liquidity aimed at bolstering core prices indices in their respective nations usually ends up in the higher-yielding financial markets.
“Central banks are playing catch up with what the market has known for some time — that global growth is slowing,” Jason Daw of Societe Generale in Singapore said.
The Rest…HERE
