Pursuits
Central Banks Fight to Ensure Crisis Tools Become the Norm
- Negative rates, QE may become part of permanent arsenal
- Critics wonder if central banks are overreaching mandates
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Unconventional tools deployed by central bankers from Frankfurt to Washington to mitigate the economic fallout of the financial crisis may be conventional when the time comes to combat the next downturn.
The Federal Open Market Committee is already discussing the issue while other central bankers and economists in developed nations debate whether to holster emergency policies -- bond buying, targeted credit programs and negative interest rates -- or make them part of their everyday armories.