Harmful "side effects" of current monetary policies "in the major advanced economies"

Monetary Policy and the Next Crisis

by John B. Taylor 

• At its annual meeting of the world's central bankers in Switzerland last week, the Bank for International Settlements—the central bank of central banks—warned about the harmful "side effects" of current monetary policies "in the major advanced economies" where "policy rates remain very low and central bank balance sheets continue to expand." 
• These policies "have been fueling credit and asset price booms in some emerging economies," the BIS reported, noting the "significant negative repercussions" unwinding these booms will have on advanced economies.
• The BIS should be taken seriously. It warned long in advance about the monetary excesses that led to the financial crisis of 2008.

Read more: www.hoover.org