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Monetary policy risks becoming ineffective in zero bound rate environment: ECB's Coeure

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - ECB executive board member Benoit Coeure in a speech delivered at a lecture in Berkley, California on Saturday and published today, noted that traditional monetary policy measures have failed in a new zero lower bound environment across the globe.

    Key Quotes:

    "We lack a clear vision of the combination of demand and supply side policies, and the broader design of the global economy, which will support growth beyond the short-term impulse provided by fiscal or monetary policy at the individual country level."

    "The capacity of the global economy to generate growth is under question,"

    "In a global zero lower bound environment, surplus countries hold world output down."

    "If we ignore those issues, there is a risk that monetary policies may become ineffective, overburdened, and/or collectively trapped in a suboptimal equilibrium."
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