INSUBCONTINENT EXCLUSIVE:
The world's most powerful policymakers are struggling to alleviate the pain of a slowing global economy with few levers left to pull and
growing concern that one of them, negative interest rates, already is creating problems of its own.
In an ideal world, elected officials
would pull more of the weight with fiscal programmes and structural reforms that would improve growth and allow interest rates to rise.
But
over three days of conversation here, the dilemma has become clear: Whether it is the US-China trade war, tightfisted spending in Germany,
rate situation could have "side effects on the financial system
You have to be careful."
Negative interest rates are now a fact of life in Europe and Japan, and multiple other countries including the
economics professor John Taylor said at a meeting of the Institute of International Finance.
He spoke at a central banking panel that showed
just how much the landscape has shifted in the decade since the 2007 to 2009 financial crisis
Far from debate over whether unconventional policies are appropriate or not, the discussion is now about whether traditional central banking
Fischer, now a senior adviser with investment management firm BlackRock.
