Binyamin Appelbaum writes that “Central Banks Act with a New Boldness to Revitalize Economies”:
So far, the results of these activist central banks have fallen short of expectations.
“I’m not sure why we’re not getting more response,” said Donald L. Kohn, a former Federal Reserve vice chairman who is now at the Brookings Institution. “Maybe we’ve made some progress in identifying some of the causes, but it’s not fully satisfying why we have negative real interest rates everywhere in the industrial world and so little growth.”
Maybe the ‘boldness’ is misdirected, concentrating on the interest rate-credit channel. In that case, the specification of an alternative target could be helpful!