Move weighs down on markets as investors cut exposure to risky assets during monetary tightening.
The last decade was marked by economic turmoil across the world. The financial crisis of 2007-08 and the eurozone crisis in late-2009 forced central banks around the world to resort to unconventional monetary policy measures to revive their respective economies. The US Federal Reserve embarked on the biggest emergency economic stimulus in history through a three-stage quantitative easing programme that lasted six years (2008-14) and saw the injection of about $3.5 trillion into the US economy. Japan also preferred using QE to revive economic growth. In October 2014, the Bank of Japan raised its QE programme to ¥80 trillion (about $733 billion) each year from ¥50 trillion previously. Faced with a similar set of problems, the eurozone also joined the QE club last month; the European Central Bank started its bond-buying programme worth €1.1 trillion (about $1.2 trillion) spread over the next 18 months to revive economic growth.
No comments:
Post a Comment