Mervyn King Joins Central Banks Seeing Limits of Monetary Policy
- Use of negative interest rates signals `diminishing returns'
- King joins Australian, Canadian bank governors in warning
Is Current Monetary Policy Sowing-the-Seeds to Crisis?
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Former Bank of England Governor Mervyn King added to calls by central bankers to recognize that monetary policy is close to its limit, saying the world faces a “major disequilibrium.”
Central banks need to “argue much more forcefully than they are doing that the answer is not monetary policy,” King said in an interview Wednesday on Bloomberg Television’s “The Pulse” with Francine Lacqua.