Whatever the Federal Reserve Just Did, It May Not Help Much

{
  "authors": [
    "Trinh Nguyen"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "dc",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "asia",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "AP",
  "programs": [
    "Asia"
  ],
  "projects": [],
  "regions": [],
  "topics": [
    "Political Reform",
    "Economy",
    "Trade",
    "Foreign Policy",
    "Civil Society"
  ]
}

In The Media

Whatever the Federal Reserve Just Did, It May Not Help Much

The global economy is on extended sick leave and central banks’ actions have failed to contain the contagion.

By Trinh Nguyen

Published on Mar 16, 2020

Source: Financial Times

The global economy is on extended sick leave and central banks’ actions so far have failed to contain the contagion. Despite aggressive measures to provide liquidity to markets, big central banks — from the US Federal Reserve and the European Central Bank to the Bank of Japan and the Reserve Bank of Australia — have not managed to stop big falls in asset prices or to shore up investors’ confidence. In the process, they have exposed three fundamental limitations of monetary policy.

Read the Full Text

This article was originally published in Financial Times.

About the Author

Trinh Nguyen

Former Nonresident Scholar, Asia Program

Trinh Nguyen was a nonresident scholar in the Asia Program at the Carnegie Endowment for International Peace.

Recent Work

Research
BRICS Expansion and the Future of World Order: Perspectives from Member States, Partners, and Aspirants
- +16
  Stewart Patrick, Erica Hogan, Oliver Stuenkel, …
Commentary
Indonesia’s Controversial Fuel Price Hike Was Actually Necessary
- Trinh Nguyen

Political Reform Economy Trade Foreign Policy Civil Society

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Malcolm H. Kerr Carnegie Middle East Center

Commentary
Diwan
In the Trump Gaza Plan, Diplomatic Failure is Success
By failing to address Palestinian representation, the current process is bound to lead to just another temporary arrangement.
Nathan J. Brown
Paper
Egypt’s Military Landlord Economy and its Limitations
The armed forces champion a form of capitalism that is generating revenue, but its reliance on rent faces diminishing returns, leaving the country with massive sunk costs and deferred returns, deepening dependency on external borrowing.
Yezid Sayigh
Article
From Hormuz to the Maghreb: The Geopolitical Reach of a Gulf Crisis
Morocco and Algeria, each in its own way, are having to navigate the global economic fallout of the U.S.-Israeli military campaign against Iran.
Yasmine Zarhloule
Commentary
Emissary
Bombing Campaigns Do Not Bring About Democracy. Nor Does Regime Change Without a Plan.
Just look at Iraq in 1991.
Marwan Muasher
Commentary
Diwan
Iran and the New Geopolitical Moment
A coalition of states is seeking to avert a U.S. attack, and Israel is in the forefront of their mind.
Michael Young

More Work from Malcolm H. Kerr Carnegie Middle East Center

Commentary

Diwan

In the Trump Gaza Plan, Diplomatic Failure is Success

By failing to address Palestinian representation, the current process is bound to lead to just another temporary arrangement.

Nathan J. Brown

Paper

Egypt’s Military Landlord Economy and its Limitations

The armed forces champion a form of capitalism that is generating revenue, but its reliance on rent faces diminishing returns, leaving the country with massive sunk costs and deferred returns, deepening dependency on external borrowing.