Central banks around the world, led by the Federal Reserve, appear to wish to stick to the ‘static approach’ of monetary policy, maintaining their present unconventional stance for as long as possible. This policy is inadequate to solve the world’s real challenges and is fraught with danger. Following this course during the recovery from Covid-19 could eventually trigger a financial crisis, bringing with it all the associated negative economic and social consequences. It would weaken banking and insurance systems whose profitability has been hit – especially in Europe – by low or negative interest rates. Moreover, it ... (full story)