Much has been said recently about the need for normalisation in the policy rates environment (in plain English - the need to hike interest rates off zero bound) and much has been inked about the feasibility of such normalisation. So the latest G30 intervention on the subject is both banal and late in timing.
But, as posted by @Schuldensuehner a few minutes ago on twitter:
Which is basically telling us two things:
- Talking of any normalisation, given the quantum of financial assets accumulated since 2007 by the Central Banks is about as realistic as talking about mining Mars for fresh water; and
- Talking of anything, but the Central Banks, taking up the task of providing liquidity in the current environment is about as sensible as arming an ice-breaker with a spoon: sure it chips ice, but good luck making much of a progress.