Should-Read: Mehreen Khan: Carney: world at risk of low rate ‘trap’ for decades

Should-Read: IMHO, the phrase “structural reform” should be banned from discussion. It is as close to being completely uninformative as a phrase could possibly be. But Carney’s main point–that monetary policy has been the only thing “keeping the patient alive” is certainly very true:

Mehreen Khan: Carney: world at risk of low rate ‘trap’ for decades: “The world economy risks being stuck in a low interest rate “trap” for decades without efforts to boost growth through structural reforms…

…Mark Carney has warned. The governor of the Bank of England said monetary policy was the only thing “keeping the patient alive” in the world’s economic policy mix eight years on from the financial crisis. Low rates around the world were the result of structural factors such as ageing demographics rather than central bank policy, Mr Carney told MPs on Tuesday. “Curing the patient requires the operation”, said Mr Carney. “Monetary policy is keeping the patient alive”.