Central Banks have been dictating economic policy world wide for a decade. \u00a0is it time to shift gears?<\/p>\n
Larry Elliot writes: \u00a0Turn those machines back on. So demands the unscrupulous banker, Mortimer Duke, when he finds he and his brother Randolph have been ruined by their speculative scam in the film Trading Places. Having lost all his money betting wrongly on orange juice futures, Mortimer demands that trading be restarted so that he can win it back.<\/p>\n
It\u2019s not known whether Christine Lagarde is a secret fan of John Landis movies. As a French citizen, Fran\u00e7ois Truffaut might be more her taste. There is, though, more than a hint of Trading Places about the advice being handed out by Lagarde\u2019s International Monetary Fund to global policymakers.<\/p>\n
To Europe and Japan, the message is to print some more money. Keep those machines turned on, in other words. To the US and the UK, there was a warning that raising interest \u2013 something central banks in both countries are contemplating \u2013 could have nasty spillover effects around the rest of the world. Think long and hard before turning those machines off because you may have to turn them back on again before very long, Lagarde is saying, because the big risk to the global economy is not that six years of unprecedented stimulus has caused inflation but that the recovery is faltering. \u00a0Should We Minimize the Role of Central Banks<\/strong><\/a><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Central Banks have been dictating economic policy world wide for a decade. \u00a0is it time to shift gears? Larry Elliot writes: \u00a0Turn those machines back on. So demands the unscrupulous banker, Mortimer Duke, when he finds he and his brother … Continue reading ![\"Central](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/10\/Central-Bank.jpg\")
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