Mapped: Negative central bank interest rates now herald new danger for the world

 

Image: The Telegraph
Image: The Telegraph

This is an excellent map of the continued failure of the post-2008 monetary experiment. We live in a truly extraordinary time for economics and geopolitics.

(From The Telegraph)

All of this begs the question of whether the world has hit the limits of what monetary policy can achieve, as the distortions produced by sub-zero rates overwhelm its stimulatory benefits.

The current global recovery has been one of the most deflationary in modern times. Over the last six-and-a-half years, the nominal GDP of the advanced world – or the total cash value of their economies – has grown by just 11pc, according to Bank of America Merrill Lynch.

Meanwhile, more than $8 trillon of high grade sovereign debt is trading at a negative yield.

Distortions such as this have led prominent monetary policymakers to dub the move into negative interest rates a “gigantic fiscal policy failure”.

Click here for the article. and interactive map.