A failure to cooperate? : Raising the risks and challenges of exiting unconventional monetary policies

Copyright © 2014 by the Centre for International Governance Innovation There was a consensus among central bankers on the The opinions expressed in this publication are those of best objectives, tools and the institutional framework the authors and do not necessarily reflect the views of necessary to deliver macroeconomic stability, which the Centre for International Governance Innovation or its O [...] Markets 2012 — essentially a bond-buying program with strings were roiled during the summer of 2013 at the mere attached — remains in legal limbo because the German mention of “tapering.” This does not even amount to a Constitutional Court suggested that the policy may tightening of monetary policy, but to a slowing down of well exceed the ECB’s authority to intervene in financial the rate at whic [...] Combine the difficulties of exiting with a benign neglect of the global consequences of their As this brief is written, the Fed and BoJ balance actions, and the major central banks impacted by the sheets continue to be influenced by ongoing asset GFC risk creating favourable conditions for a new crisis. [...] These policies, however, become less effective at markets is larger for the BoE, the BoJ and the Fed, who the margin while the risks continue to grow. [...] These and abrupt asset repricing is also higher in the United could render the use of the policy rate ineffective during States, the United Kingdom and Japan because their the exit process.