When it comes to Central Banks, there are doves and hawks - though in recent times, the two have become confused as to just what they think. However, it is becoming clear that in spite of their incessant need to print money (liquidity) into existence to maintain the status quo, some (but not all) are realizing there are very real costs to this insanity. Compare:
- ECB - *COEURE: LIQUIDITY INTERVENTION CAN INTERFERE WITH PRICE STABILITY
- ECB - *COEURE SAYS CRISIS SUPPORT CAN LATER HAVE "PERVERSE EFFECTS"
and
- FED - *WILLIAMS SEES UNCONVENTIONAL STIMULUS FOR NEXT FEW YEARS
- FED - *ROSENGREN SAYS FISCAL CONFLICT WARRANTED FORGOING FED QE TAPER
- FED - *FED ZERO-RATE MOVE DIDN'T COMPROMISE POLICY
It seems central bankers believe what they want to believe.
ECB's Coeure had some other words of warning to a Fed that appears set to extend the Un-Taper to support its feckless politicians...
- *COEURE SAYS LIQUIDITY INTERVENTION CAN GENERATE MORAL HAZARD
- *COEURE: LIQUID INTERVENTION CAN LEAD TO UNWARRANTED CREDIT RISK
- *COEURE: LIQUID. INTERVENTION CAN INTERFERE WITH PRICE STABILITY
- *COEURE SAYS CRISIS SUPPORT CAN LATER HAVE `PERVERSE EFFECTS'
- *ECB'S COEURE SAYS `FINE LINE' BETWEEN LIQUIDITY, SOLVENCY NEEDS
- *COEURE: CENBANK LIQUIDITY SHOULDN'T SUBSTITUTE LACK OF CAPITAL
Whocouldanoda?