Global Economies – Closing 2015 and Opening 2016 (#97)
The end of 2015 was the culmination of 7 years of vast injections of cash as stimulative measures, and near zero interest rates policy (‘ZIRP’), in the developed economies. And at the end of it all one can safely say that for the most part the flood of stimulus money was ill spent, because it did not trigger or support a sustainable global economic recovery. And, the extraordinarily low price of money through ZIRP only encouraged heavy speculation in the financial markets, by the banks and financial institutional players, which in turn has recreated the very risks that had brought on the last global financial crisis.