QE
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In the immediate aftermath, by agreeing to buy Euro 60 billion worth of public and private securities on a monthly basis until September 2016, under its recently launched quantitative easing ( QE ) program, the European central bank (ECB) has quite clearly distorted the market. Also the initiative has given once in a life time
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A well thought out financial regulatory framework, economic system, and policy decisions that can stand the test of time needs to be evolutionary, and requires a certain level of debate, discussion of ideas and possibilities. A strategy and approach that has gone through an evolutionary process, and is proactive, tend to have a greater chance
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When answering the question, why the quantitative easing (QE) didn’t create an inflationary fire in the developed world as expected by many in the markets, we would probably need to go back to basic. And based on basic economics, we know that the real inflation is driven by an increase in spending from the consumer side. The
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Perception is a major factor driving volatility in the market and this is why I am of the firm opinion now that it’s the market psychology and the overall investors sentiment aka the “mood of the markets” that creates and drives the volatility. And when a perception starts getting entrenched then people generally tend to
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The US Federal Reserve Open Market Committee’s announcement on lowering the amount of monthly bond purchases or in other words tapering of the existing level of quantitative easing (QE) has got the financial markets animated in a big hoo-ha causing volatility. And the financial media has been inundated with commentaries on various plausible scenarios.
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In the past few weeks the markets have come to a realization that the developed world is struggling to generate growth and going forward the global growth projections put out by multilateral institutions including of the International Monetary Fund ( IMF ) and the World Bank paints gloomy picture. The growth outlook has been downgraded