{"id":32632,"date":"2016-03-07T07:01:38","date_gmt":"2016-03-07T07:01:38","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=32632"},"modified":"2016-03-07T07:01:38","modified_gmt":"2016-03-07T07:01:38","slug":"central-bankers-asleep-on-the-watch","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2016\/03\/07\/central-bankers-asleep-on-the-watch\/","title":{"rendered":"Central bankers asleep on the watch"},"content":{"rendered":"<p>The <a href=\"https:\/\/next.ft.com\/content\/9986e20e-e211-11e5-9217-6ae3733a2cd1?ftcamp=crm\/email\/\/nbe\/InTodaysFT\/product\" target=\"_blank\">FT carries an article under this heading this morning<\/a>:<\/p>\n<p><a href=\"http:\/\/www.taxresearch.org.uk\/Blog\/2016\/03\/07\/central-bankers-asleep-on-the-watch\/screen-shot-2016-03-07-at-06-56-33\/\" rel=\"attachment wp-att-32633\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-32633\" src=\"http:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2016\/03\/Screen-Shot-2016-03-07-at-06.56.33-550x114.png\" alt=\"Screen Shot 2016-03-07 at 06.56.33\" width=\"550\" height=\"114\" srcset=\"https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2016\/03\/Screen-Shot-2016-03-07-at-06.56.33-550x114.png 550w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2016\/03\/Screen-Shot-2016-03-07-at-06.56.33-300x62.png 300w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2016\/03\/Screen-Shot-2016-03-07-at-06.56.33-800x165.png 800w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2016\/03\/Screen-Shot-2016-03-07-at-06.56.33-200x41.png 200w, https:\/\/www.taxresearch.org.uk\/Blog\/wp-content\/uploads\/2016\/03\/Screen-Shot-2016-03-07-at-06.56.33.png 1356w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><\/p>\n<p>Summers hypothesis is that if inflation looked like it was running away with itself we could be quite sure that central bankers would be acting, and fast. Because it is instead at or near negative territory they are so far from taking action it is as if they are asleep on the watch.<\/p>\n<p>He concludes by saying:<\/p>\n<blockquote><p>Today\u2019s risks of embedded low inflation tilting towards deflation and of secular stagnation\u00a0in output growth are at least as serious as the inflation problem of the 1970s. They too will require shifts in policy paradigms if they are to be resolved.<\/p>\n<p>In all likelihood the important elements will be a combination of fiscal expansion drawing on the opportunity created by super low rates and, in extremis, further experimentation with unconventional monetary policies.<\/p><\/blockquote>\n<p>People's Quantitative Easing in other words, or\u00a0<a href=\"http:\/\/www.taxresearch.org.uk\/Blog\/2015\/03\/12\/how-green-infrastructure-quantitative-easing-would-work\/\" target=\"_blank\">Green Infrastructure Quantitative Easing<\/a>\u00a0as I once called it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FT carries an article under this heading this morning: Summers hypothesis is that if inflation looked like it was running away with itself we<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2016\/03\/07\/central-bankers-asleep-on-the-watch\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,74],"tags":[],"class_list":["post-32632","post","type-post","status-publish","format-standard","hentry","category-economics","category-green-new-deal"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/32632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=32632"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/32632\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=32632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=32632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=32632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}