The New Europe: Spending boom or sustainable growth? How QE is influencing global economies and the sustainability of such actions
Challenges in Global Affairs, Final Project by Stefan “Ste” Becker
More than Six years after the subprime crisis (also known as global financial crisis), central banks in emerging and developed economies alike are continuing to pump money in the system like there is no tomorrow. Seems like they like their activist role either active or passive leading to an unpredictable monetary policy. Mohammed El Erian just asked in one of his recent blog posts “How much road remains in this extraordinary journey?” (2) Before we dig deeper into this question and have a look at the results so far for global economies lets look at the development over the past years and how the balance sheets of central banks have immensely expanded.
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