Unconventional central bank policies, including quantitative easing (QE) have failed to spur either inflation or growth as fiscal austerity continues to bite, Nouriel Roubini said in an op-ed for Project Syndicate.
“We live in a world in which there is too much supply and too little demand,” wrote Roubini, the bearish economist known as “Dr. Doom,” who successfully called the housing crash leading into the Global Financial Crisis. “The result is persistent disinflationary, if not deflationary, pressure, despite aggressive monetary easing.”
The reason all that easing hasn’t caused inflation is because the post-2008 economic recovery has been anemic, amid a “painful deleveraging” after large buildups of both public and private debt, said Roubini, the head of Roubini Global Economics and a professor at New York University.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.