Hubris and undeserving crowd worship have made it nearly impossible for central bankers to admit they have made a monetary mess over the past 20 years. But everyday now, more and more talking heads are admitting the obvious.
Jason Trennert, chief investment officer at Strategas Research, and Bloomberg’s Michael McKee examine what has changed in the nine years since the start of the financial crisis and look at the effectiveness of monetary policy. Here is a direct video link.
And when you have Paul Krugman–who was an early advocate for quantitative easing and inflation targeting and saying that the practice had no downside–now finally acknowledging that these measures were no game changer capable of sparking an economic recovery, you know Fed policies are losing believers.
Paul Krugman, a Nobel Prize-winning economist, discusses whether monetary policy is still effective. Here is a direct video link.