Shifting Narrative around Central Bank Omnipotence

The strong Narrative around Central Bank Omnipotence, which solidified in late September 2012, is now clearly weakening in late August 2013. There are two strands of this weakening: growing concerns over Fed competence given its reliance on communication as a policy instrument, and pronounced concerns that Emerging Market central banks are powerless to control their own monetary fate.

epsilon-theory-shifting-narrative-around-central-bank-omnipotence-august-27-2013.pdf (347KB)