Global: Of rabbits, bankers and what matters
Central bankers’ reluctance to address the failings of their quantitative macro models (while overlooking the qualitative forces that are affecting economies) is nothing new. As time goes by, the risks of continuing like this multiply. While the money-wheel keeps spinning, asset markets will continue to rise. But central bankers need to embrace the structural forces that are affecting economies. Otherwise they’ll bump into the echo of recent disasters.