The Only Game Of Town ( 2016 ) By Mohamed. El Erian

1322 Words6 Pages
The Only Game In Town (2016) by Mohamed. El-Erian, writes about the future of the global economy and markets, outlining the choices we face both individually and collectively in an era of economic uncertainty and financial insecurity. It also explains the Central Banks, instability, and avoiding the next collapse which discusses the role of central banks in confronting the current financial and economic dangers facing the world. Followed by the financial collapse of 2008, central banks pursued aggressive and innovative policies to stabilize the world economy. Policy makers have failed to enact the measures necessary to ensure growth, and so central banks have had to continue to innovate and stabilize. However, central banks cannot sustain…show more content…
This gathering of governor was joined by leading academics, thought leaders, and commentators on monetary policy. The world of modern central banking and global finance had now entered a new phase of even more obvious artificiality and distortions. According to the author, Mohamed. El-Erian, “Ones whose skillful management of the price and quantity of money in an economy was key to containing inflation, promoting economic growth, and avoiding financial crises.” Since the global financial crisis of 2008, central bank has ventured, by necessity but not by the choice. They set the interest rates higher. For an unusually prolonged period, the central bank was bold policy experimentation. During that time, many of the economists thought that central banks had been forced to operate, and many of them wondered about it consequences. From the beginning of the financial crisis, there was the hope that courageous and responsive central banks would succeed in handing off the baton to high growth, robust job creation, price stability, and financial system. The world was in the process of grow out of its debts problems avoiding the debt defaults because the policy making entities were finally in the economic governance responsibilities and with the job returning and economic prosperity. The world changed in two important ways: one had to do with the analytics of central banking,

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