keeping pace with
Not so long ago there was a period when it seemed that world central banks were on the path to normalization. We have been approaching a significant milestone on a long journey since 2008, when in response to the collapse of the global financial system, central banks around the world adopted a number of unconventional political measures. They lowered interest rates to zero. Under the sign of quantitative easing, they have acquired mountains of bonds.
Janet Yellen, then chairman of the U.S. Federal Reserve, ended her quantitative easing program in October 2014. By this time, the country’s central bank had accumulated assets of $ 4.5 trillion. Since then, the balance has been depleted, and interest rates have risen. The European Central Bank (ECB) did not join the quantitative easing game until March 2015, but stopped its purchases in December 2018. Meanwhile, the Bank of Japan was the exception that proved the rule. Continue reading