“The three recent central bank meetings — the Bank of England, the European Central Bank and the Federal Reserve — made very good cases for additional stimulus measures, though they failed to specify what these would be.
Equities and certain bonds that had surged on the basis of verbal assurances by central bankers and political leaders sold off. There was no panic given central bankers’ promises to do more in the future should additional action be needed. This is what the standard narrative has been.
But it misses important context, and there is more at play here. The unfortunate reality is that, unlike during the financial crisis of 2008 and 2009, central banks can’t be the saviors this time around for a struggling global economy. Other government entities, with better-suited policy tools, need to step up to the plate.”
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