“The six months under review have seen central bankers continuing
what is surely the greatest experiment in monetary policy in the
history of the world. We are therefore in uncharted waters and it is
impossible to predict the unintended consequences of very low interest
rates, with some 30 percent of global government debt at negative
yields, combined with quantitative easing on a massive scale,” Rothschild writes in the company's semi-annual financial report.
The
banker notes this policy has led to a rapid growth of stock markets -
US stocks have grown threefold since 2008 - with investments growing and
volatility remaining low.
However, the real sector of economy didn’t enjoy such a profit, as “growth remains anemic, with weak demand and deflation in many parts of the developed world,” according to Rothschild.
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