Central Banks Can’t Save the World
This article is for subscribers only.
Aug. 3 (Bloomberg) -- The three central bank meetings thisweek -- the Bank of England, the European Central Bank and theFederal Reserve -- made very good cases for additional stimulusmeasures, though they failed to specify what these would be.
Equities and certain bonds that had surged on the basis oflast week’s verbal assurances by central bankers and politicalleaders sold off. There was no panic given central bankers’promises to do more in the future should additional action beneeded. This is what the standard narrative has been.