European Central Bank can’t fix Europe’s economy, warns UBS boss

EUROPE’s monetary policymakers can’t fix the bloc’s economy woes, the boss of a leading investment bank has warned.

The European Central Bank (ECB) has the near impossible task of nursing the region back to health and has tried a number of desperate initiatives in recent years to kick-start growth.

Yet most recent figures signal the bloc is still struggling to stay afloat. Continue reading

Market Perspectives The Monetary Illusion

When such a newsletter comes from an institution such as Guggenheim, the soon-to-come problems America faces couldn’t be more surreal.

 

As economic growth returns again to Europe and Japan, the prospect of a synchronous global expansion is taking hold. Or, then again, maybe not. In a recent research piece published by Bank of America Merrill Lynch, global economic growth, as measured in nominal U.S. dollars, is projected to decline in 2015 for the first time since 2009, the height of the financial crisis.

In fact, the prospect of improvement in economic growth is largely a monetary illusion. No one needs to explain how policymakers have made painfully little progress on the structural reforms necessary to increase global productive capacity and stimulate employment and demand. Lacking the political will necessary to address the issues, central bankers have been left to paper over the global malaise with reams of fiat currency.

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