Economics
The Global Economy Is Vulnerable and Central Banks Aren’t Ready
- BIS economics chief Borio says global economy has a ‘fever’
- Market ructions are inevitable after years of stimulus
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The global economy is looking shaky and the economics chief at the Bank for International Settlements says central banks may be powerless if it all goes awry.
Claudio Borio, a long-time critic of loose monetary policy, used the BIS’s latest Quarterly Review to highlight again that central bankers were overburdened after the global financial crisis. He said side effects are inevitable, including market turmoil such as that seen in emerging markets in response to Federal Reserve tightening and dollar appreciation.