BIS Study Casts Doubt on ‘Ultimate Effectiveness’ of QE
- Easy money shown to tame market volatility, risk premia
- But post-crisis this had no ‘significant impact’ on growth
Views Of The Federal Reserve As Bond Market Sees Fed Delaying Rate Increase
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Central banks might have a problem with their policies, according to their bank.
A working paper by the Bank for International Settlements found cuts in interest rates and asset purchase programs can help reduce volatility in stocks and bonds and dampen the so-called term premium, or the additional compensation investors receive for holding longer-term government debt.