(AGI) – New alarm for global finance, which could be hit by another tsunami, after the financial crisis of 2008. The alarm was launched by the Bank for International Settlements, which cited the ineffectiveness of expansionary measures for banks central, right in the week when the ECB meets, “what we see may not be just isolated lightning, but the signs of a nearby storm that is brewing a long time,” said Claudio Borio, head of the economic and Monetary Department of the BIS, at the presentation of the quarterly report. The economist explained that “despite exceptionally expansionary monetary conditions, growth in key areas has been disappointing and inflation has remained stubbornly low.” From this is derived a confidence effect of financial operators in respect of the measures taken or announced by the central banks and thus lower effectiveness of traditional instruments of monetary policy (interest rates or quantitative easing). All conditions that are likely to spark a new crisis. “Even policymakers would do well to take note,” he warned Borio, shooting a warning issued by the last G20 summit in Shanghai, where the Twenty leaders agreed that monetary policy is not enough and that it would be appropriate to act on reforms, taxation and investments to boost growth. Meanwhile, the ECB is preparing this week to launch new stimulus measures, at least according to prevailing expectations, despite the opposition of the “hawks” Germans.
03/07/2016 10:30:01
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