Economics
Central Banks Step Up $5.6 Trillion Bond Binge Despite Doubts
- Bond-buying has been used for years to help revive inflation
- Policy may yield diminishing returns in post-Covid recovery
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Global central banks are embarking on fresh waves of bond-buying to fight the fallout from the pandemic, despite mounting claims that the once-mighty policy is losing its power to boost the economy.
The U.S. Federal Reserve, Bank of England, Bank of Japan and the European Central Bank have splurged $5.6 trillion this year alone on quantitative easing, according to Bloomberg Economics. The ECB is expected to increase its own purchase plans by as much as 500 billion euros ($605 billion) when it meets on Thursday.