Don't Make Central Banks Sole Agents of the Recovery, G30 Says
- Think tank says loose-policy risks not well understood
- Former ECB President Trichet is chairman of advisory group
Global central banks must do more to spot oncoming turmoil caused by years of their own ultra-loose monetary policy, while avoiding being cast by governments as the sole agents of economic recovery, the Group of Thirty financial-policy group said.
“While unconventional policies such as quantitative easing, off-balance-sheet commitments, and forward guidance have played an important role in the management of recent crises, deeper studies are still needed to ascertain their longer-term overall benefits and unintended consequences,” the Washington-based G30 said in a report prepared for the International Monetary Fund’s annual meeting in Lima this week. “Central banks alone cannot be relied upon to deliver all the policies necessary to achieve macroeconomic goals.”