Monday, November 11, 2013
Global Central Banks Stimulate Inflation
ANBOUND
Since the European Central Bank (ECB) cut its interest rate unexpectedly, the global central banks that concern about deflation are taking the approach of stimulating inflation. The ECB will eventually follow the policy of quantitative easing. However, there is still a long way for the expansion of monetary base and economic recovery. ECB's bold monetary policy may not have instant effect to its own country but it will have spillover effect and impact towards the emerging economies.