Shifting Narrative around Central Bank Omnipotence

Category: Note

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)