BIS Quot
There is a phrase that says: "All the past was better." That's what seems to be the conclusion of more than one hundred central bankers meeting in Basel at the meeting of the BIS. It is true. For monetary policymakers, and will not be as simple to maintain a certain control, the interplay between growth and inflation using the magic wand of the interest rate. The current situation is far more complex and it is not enough to change the interest rate, but there are other factors that are outside the scope of central bankers. Learn more about this topic with the insights from Peter Schiff. This meeting of over a hundred bankers in Basel, not only served to discuss the context faced by monetary policymakers, but also to try to find the culprits of the current situation (and thus get rid of some of responsibility for what is to come) …
Thus, in the first annual report issued after the crisis unleashed in the subprime mortgage market by the Bank for International Settlements (BIS) with diplomacy, but sharply, criticized the actions of some central banks (the Fed to head), which in the early years of this decade did not set interest rates at levels high enough to avoid an unsustainable credit growth ( just now discovered what this?), which caused financial and real estate bubbles that have burst last year and indeterminate generating large costs to the real economy. Really what was left over at the meeting of central bankers was pessimism. In this context, the BIS warned that "the unrest that is currently living in major financial centers is without precedent in the postwar period." At present, monetary policies are ineffective due to rising international energy prices and food prices.