Editor’s note: This is the second of a two-part post on monetary policy. Part one is here.
In the aftermath of the financial crisis, policy makers’ aversion to fiscal policy is still large. So monetary policy rules the roost. With developed economies burdened by low growth, unemployment, and high levels of debt, monetary agents have become aggressive in policy responses. This will lead to unintended consequences. Below are my thoughts.
Separating fiscal and monetary policy
Yesterday’s post summed out my view that Europe and North America’s policy framework has become increasingly geared toward monetary policy and thus toward credit, asset prices, and financial markets. Some economists like Larry Summers believe this is a natural outgrowth of a secular stagnation in g...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.