The world's central bank in the trap of QE

Abstract

The article analyzes the policy of the Central Bank in developed countries as for questions of monetary stimulation of the global economy; It is justified that the Central Bank of developed countries in the near future will not be able to stop monetarist stimulation and reduce the volume of assets on their balance sheets without serious negative consequences for the world economy. When the Central Bank implements such actions, officials lose the incentive to maintain a stable fiscal policy. In this case, the effectiveness of monetary programs over time is reduced to zero, leading to inflation of the value of fi­nancial assets, but not helping the real economy.