“Three Things I Learned In Washington”: Central Bankers Aren’t Sure What To Believe Anymore

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Zero Hedge: As the world’s central banks and economic policymakers convened in Washington over the weekend for the annual meetings of the IMF, IIF and World Bank, there was a distinct lack of conviction in the air.

“Globally synchronised slowdown”, trade wars, political uncertainty and persistent ultralow interest rates have ground down most investors and policymakers’ belief in the prevailing economic or market narratives.

So the most interesting conversations were about transitions and tail risks. What are the long term implications of negative rates? How disruptive is digital money? And what does the greening of the financial system mean in practice? more …

Opinion: Three things I have learned by watching central banks:

  • They make a lot of mistakes
  • Those at the top are secular progressives
  • They are the cause of boom and bust cycles

Not one of the central bank geniuses had a care in the world for deficits and debt. That the Eurozone is barely above a recession, or that once they sink into recession, zero interest rates will have eliminated the central banks ability to stimulate the economy without printing new money, is for sure in the back of their highly educated minds.

I wonder what the final QE will be called when it all comes apart. QE 13 perhaps?