Surviving in the Intellectually Bankrupt Monetary Policy Environment, Richard C. Koo, Chief Economist, Nomura Research Institute, auf der ACATIS Value Konferenz 2016 in Frankfurt am Main (20.05.2016). Video/ Vortrag auf Englisch.
Our economics is based on the assumption of profit maximization. However, what happens, when this assumption is no longer valid, when companies pay down debt at zero interest rates? This is when the economy has entered a balance sheet recession. In such a situation, monetary policy becomes a largely useless weapon. After years of monetary policy with limited effectiveness, Richard C. Koo is asking: How can we escape from the QE-Trap?