Haldane: Stuck

From bankofengland.co.uk

Oliver Jeffers is an author and illustrator of children’s books. In Stuck, he tells the story of a boy whose kite becomes lodged in a tree. The boy makes vigorous attempts to dislodge the kite by throwing up objects, including a cat, a gorilla and an ocean-liner. (The story is fictional.) Yet the kite remains stuck. Central banks today can sympathise with the boy’s dilemma. Official interest rates in the major economies remain stuck at unprecedentedly low levels. Central banks have made vigorous attempts to dislodge them, including through special liquidity schemes, asset purchases and forward guidance. (This ... (full story)