Geopolitics, and the 'end' of QE, are ushering in a new global economic era

clock • 3 min read

Whether quantitative easing is an effective tool or if balance sheets of the central banks will shrink visibly in near future, one thing is very clear - the monetary, financial and geopolitical landscape has changed considerably, influencing many asset classes and ushering in a new economic era.

Contrary to popular historic imagination, Japan was in fact the birthplace of quantitative easing. It was first to implement the unconventional policy in 2001. But QE only entered the economic lexicon when the US Federal Reserve, followed shortly after by the ECB, BoE and BoJ, started the process of buying $600bn in asset-backed securities during the Great Financial Crisis. There are many ways of looking at this monetary policy tool - and it would be easy to write a dissertation about its effectiveness. But in short, these policy measures have entered the toolkit of central bankers an...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Trustpilot