Infrastructure planning and moral hazard

As central banks around the world deplete their monetary arsenal without succeeding in reviving growth, strong consensus is building for large fiscal stimulus in the form of infrastructure investments. Contrary to QE, widely criticized for contributing to the increase in social inequality, infrastructure investments are palatable to all parts of the political spectrum as they … Continued

Deflation: an inconvenient truth?

After fiercely fighting inflation over decades, central banks are now trying to revive it by all means, be it quantitative easing, negative interest rates or currency depreciation. This poses an intriguing question apt for fans of conspiracy theories: do central bankers know something that the rest of us don’t? The policy twist followed the financial … Continued