Monetary Policy Is Doing ‘Serious Damage,’ Folkerts-Laundau Says
- Negative rates are ‘a poison’ for the financial sector
- Must question looser policies, next step must be fiscal
Folkerts-Landau: Monetary Policy Now Doing Serious Damage
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Loose central bank policies may not have only run their course, but are now causing harm, according to Deutsche Bank’s chief economist.
“Monetary policy has reached its limits. In fact, now it’s at the point where it’s doing serious damage,” David Folkerts-Landau said in an interview with Bloomberg TV on Friday. “We have tried everything in the last six years via central bank policy to stimulate demand, and we haven’t succeeded.”