"Global Competitive Quantitative Easing": "For imposing Taxes on us without our Consent"

"In March of 2009, central banks began a campaign against deteriorating financial conditions.

When the Bank of England announced quantitative easing,
the Federal Reserve and several other central banks,
including the Bank of Japan and the European Central Bank,
followed suit.

For imposing Taxes on us without our Consent

.

The unanimous Declaration of the thirteen united States of America

In the 1930s, the U.K. abandoned the gold standard, allowing a devaluation of the pound,
and several other countries followed with devaluations.

They were known as competitive devaluations, since they sought to boost trade.

For imposing Taxes on us without our Consent

.

The unanimous Declaration of the thirteen united States of America

In 2009, major developed economies experienced severe recessions for similar reasons
– credit contraction – and so central banks acted in their own interest.

Central banks followed each other in a competitive way, absent a coordinated response.

And so quantitative easing was dubbed “competitive QE.”

...The choice has become more urgent as downward adjusted growth expectations
resulting from fiscal austerity combined with financial market stress
have heightened the risk of a liquidity trap.

Central banks could respond to a liquidity trap
with tools to make their real rates and currencies as unattractive as possible.

For imposing Taxes on us without our Consent

.

The unanimous Declaration of the thirteen united States of America

Recently, the Swiss National Bank did this by announcing an explicit floor on the Swiss franc.

The Bank of Japan responded by expanding its asset purchase fund,
while Japan’s Ministry of Finance assisted by unilaterally intervening in the Japanese yen.

...Next, the European Central Bank coordinated with the Fed,
the Bank of Japan and the Swiss National Bank
to offer three dollar liquidity auctions until year-end...

For imposing Taxes on us without our Consent

.

The unanimous Declaration of the thirteen united States of America

...As competition intensifies, cooperation and coordination among global central banks
could diminish and engender a timing dilemma for policy reversal.

At the same time, decisions may become asymmetrical
as central bank actions are not synchronized but rather self-centered.

...there is a very wide range of inflation outcomes.

For imposing Taxes on us without our Consent

.

The unanimous Declaration of the thirteen united States of America

As a competitive process in central bank decisions continues,
greater inflation volatility increases uncertainty in global economies..."

Tony Crescenzi, Ben Emons, Lupin Rahman, Andrew Bosomworth and Isaac Meng​