Sublime

With interest rates low and set to remain so, and banks prepared to prop up weak businesses for fear of crystallising losses, monetary policy looks very unlikely to precipitate a major reallocation of resources.

In the words of Bill Gross, who runs the world’s largest bond fund at the Pacific Investment Management Company (PIMCO), ‘bond markets have power because they’re the fundamental base for all markets. The cost of credit, the interest rate [on a benchmark bond], ultimately determines the value of stocks, homes, all asset classes.’

as Raghuram Rajan puts it, “What is particularly alarming is that the risk taking may well have been in the best ex ante interests of their shareholders.”

avoid the possibility of political influence, which, as he saw it, was the critical weakness of the Second Bank in the time of Jackson.

Some highlights have been hidden or truncated due to export limits.

Les interventions des banques centrales au printemps 2020 n’ont pas été justifiées politiquement pour monétiser un programme de relance keynésien comme ce fut le cas après la Seconde Guerre mondiale. L’intervention est restée circonstanciée, proportionnée à l’objectif d’inflation, et surtout convoquée en urgence par l’instabilité financière. Pourta