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

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