Equity markets around the world are responding enthusiastically today to news of further central-bank stimulus, and understandably so. Central banks have been the markets’ best friends. Betting on their continued support has been a very profitable strategy for investors in recent years. Interestingly, central banks themselves are less confident than markets and, again, for good reasons. They don’t like being the only policy game in town, particularly given the extent to which economic growth has repeatedly undershot their expectations and forecasts. After all, monetary policy makers don't have the tools to remedy ... (full story)