At the end of January, the new head of the European Central Bank (ECB), Christine Lagarde, announced the launch of a year-long strategic review of the bank’s monetary policy strategy. Stemming from this, there has been much discussion recently about the ECB’s existing “below but close to 2%” inflation target, and whether this needs to be made more specific, both in aim and measurement.
Gold Focus: Items tagged with "monetary policy"
Looking ahead we expect two macroeconomic trends to play a key role; financial market uncertainty and accommodative monetary policy will likely support gold investment demand.
Paul Fisher was a senior figure at the Bank of England for over 26 years – a member of the Monetary Policy Committee from 2009–2014 and Executive Director for Markets during most of the Great Financial Crisis. He considers the origins of the crisis and whether it could happen again.
In his book The Curse of Cash, leading economist Ken Rogoff suggests that excessive reliance on paper money is responsible for ills ranging from tax evasion to terrorism. He also believes that monetary policy would be more effective in a largely cashless society. Cryptocurrencies are not an effective replacement for paper money, he says, but gold’s role is likely to increase as cash fades from view.