Latvian cb gov and ECB governing council member on Rtrs
- central banks are printing money " but we still see inflation is coming down and GDP forecasts being revised down"
- excess liquidity has stayed in the banking system and hasn't reached the economy
"Monetary stimulus is like aspirin for a very important and difficult disease. Aspirin is just a pain killer"
I'm with him on these sentiments and have said so for a long time. Banks have used the cheap money to shore up their own fragile defences
QE can only do so much but there is definitely a cause for concern when all that cheap money makes little difference
