Are clumsy Central bankers about to destroy the global economy?
Duncan Richardson, News Editor
26 Apr 2016, 11:20 a.m.
Clumsy interventions by central banks have the potential to bring the global economy to its knees. This is the view of the Societe Generale head economist, Albert Edwards.
On Friday Edwards attacked Janet Yellen for failing to see asset bubbles in the U.S. economy, Ben Bernanke for prompting the option of helicopter money and Mario Draghi for pretending quantitative easing works.
Instead Edwards aligned himself with the view of the German Finance Minister Wolfgang Schaeuble, who earlier this month blamed European Monetary policy for the rising popularity of right wing political parties.
For the first time since the 2008 economic crisis central bankers are having to defend their policies. Perhaps not surprising when you consider the global economy is stalling despite central banks printing trillions of dollars and taking interest rates to zero. The financial system is built on confidence and if lost, we can expect a prolonged period of social and economic instability.