{"id":33335,"date":"2016-03-10T05:34:58","date_gmt":"2016-03-10T04:34:58","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=33335"},"modified":"2016-03-10T05:35:49","modified_gmt":"2016-03-10T04:35:49","slug":"33335-2","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/33335-2\/","title":{"rendered":"Are Central Banks the Only Game in Town?"},"content":{"rendered":"

Focus on Finance<\/span><\/p>\n

\u201cThe world has largely exhausted the scope for central bank improvisation as a growth strategy,\u201d says Larry Summers, Harvard economist and advisor to Presidents.\u00a0<\/span><\/p>\n

The new normal is low growth, rising inequality, political dysfunction and sometimes social tension.\u00a0 <\/span>Central banks have intervened.\u00a0 <\/span>Technical innovation has been transformative. And yet we are at a fork in the road.\u00a0 <\/span>Great New York Yankees baseball catcher Yogi Berra was fond of saying, \u201cWhen you come to a fork in the road, take it.\u201d\u00a0<\/span><\/p>\n

Unfortunately we can\u2019t have both forks.\u00a0 <\/span>Either we will get higher inclusive growth and genuine financial stability.\u00a0 <\/span>r we will get mired in lower growth with periodic recessions and the return of financial instability.\u00a0<\/span><\/p>\n

We need to make better choices as households, companies, and governments.<\/span><\/p>\n

WHen other policy makers were paralyzed by the world economic crisis in 2008-9, central banks stepped up.\u00a0 <\/span>The created a largely artificial growth path but the underlying engine of economic prosperity was not re-vamped.\u00a0<\/span><\/p>\n

Central banks\u2019 ability to pull new rabbits out of a hat is shrinking.\u00a0<\/span><\/p>\n

The 17th century saw the creation of the first central banks in Sweden and then England. <\/span><\/p>\n

Today the US Federal Reserve is the most powerful central bank in the world, but it was only created following a financial crisis in 1913. \u00a0 <\/span>The Fed\u2019s mission is to \u201cprovide the nation with a safe, flexible, stable monetary ans financial system.\u201d<\/span><\/p>\n

The European Central Bank, representing 19 nations, is the second most powerful. It began to operate in 1999.\u00a0<\/span><\/p>\n

We will present a series of articles on central banks.\u00a0 <\/span>They are based on Mohammed El Erian\u2019s recent book, \u201cThe Only Game in Town: Central Banks, Instability and the Next Collapse.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Focus on Finance \u201cThe world has largely exhausted the scope for central bank improvisation as a growth strategy,\u201d says Larry Summers, Harvard economist and advisor to Presidents.\u00a0 The new normal is low growth, rising inequality, political dysfunction and sometimes social … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-33335","post","type-post","status-publish","format-standard","hentry","category-finance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t