For the first time since the Great Depression, the world is in a global liquidity trap. FT

The unintended consequence of many central banks pushing negative interest rate policy is conjuring deflationary headwinds, stronger currencies, and slower growth — the exact opposite of what struggling economies need. 

But when monetary policy is the only game in town, negative rates are likely to beget even more negative rates, creating a perverse cycle with important implications for investors.

Scott Minerd is global chief investment officer at Guggenheim

FT 6 April 2016

Liquidity trap