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

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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.

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