Citi: This Is One Reason Why More Quantitative Easing Probably Won't Work
While debt is cheap, equity is expensive.
We Expect no Change in ECB Policy, Says Investec's Shaw
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As central banks in Europe and Japan gear up to further expand quantitative-easing policies, market participants have issued a flurry of stark warnings about the potentially-negative unintended consequences, from the hit to pension funds to the risk of fueling market bubbles.
But the more-prosaic prognostication — that further easing simply won't stimulate slowing economies by reviving enfeebled corporate investment — may be the hardest-hitting retort from the perspective of central banks in the U.K., euro-area and Japan.