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Central banks will never admit they’ve run out of ammunition, but they have
The big bazookas are loaded. The attack helicopters are fueled up and ready to fly. The arsenal is fully equipped with new and terrifying weapons, the like of which you have never seen before. It is perhaps no surprise that central bankers are increasingly resorting to military metaphors to describe their battle against deflation. They way they see it, they are fighting a war, and, just like generals in the field, their tactics are as much psychological as economic. Over the last few weeks, in the wake of the latest of the latest round of extraordinary policy measures from central banks in both Europe and Japan, ... (full story)
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