Practical analysis for investment professionals
16 October 2014

Poll: Will Central Banks Reduce Their Involvement and Let Economies Operate on Their Own?

Posted In: Economics

Since the financial crisis of 2008, central banks around the world have engaged in massive monetary stimulus and market interventions.

Over the past six years, global central bank balance sheets have approximately doubled to US$20 trillion — much of which has gone into buying government bonds, which has reduced interest rates. With the Federal Reserve now embarking on a cessation of quantitative easing, many fear that interest rates may rise and stanch economic growth.

Mohamed A. El-Erian will be exploring this topic at the CFA Institute Fixed-Income Management Conference (watch via Livestream).

Consequently, we asked CFA Institute Financial NewsBrief readers to comment on whether they believe central banks will be able to reduce their involvement in markets and let economies operate on their own.

Over the next few years, will central banks succeed in reducing their involvement in markets while enabling economies to flourish on their own?

Poll: Will Central Banks Be Able to Reduce Their Involvement and Let Economies Operate on Their Own?

An overwhelming majority (64%) indicated that central banks won’t be able to successfully extricate themselves from market interventions. In contrast, only 18% of respondents believe that central banks could manage the transition. And the remaining 18% said they don’t know.

If you liked this post, consider subscribing to the Enterprising Investor.

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

About the Author(s)
Ron Rimkus, CFA

Ron Rimkus, CFA, was Director of Economics & Alternative Assets at CFA Institute, where he wrote about economics, monetary policy, currencies, global macro, behavioral finance, fixed income and alternative investments, such as gold and bitcoin (among other things). Previously, he served as SVP and Director of Large-cap Equity Products for BB&T Asset Management, where he led a team of research analysts, 300 regional portfolio managers, client service specialists, and marketing staff. He also served as a Senior Vice President and Lead Portfolio Manager of large-cap equity products at Mesirow Financial. Rimkus earned a BA degree in economics from Brown University and his MBA from the Anderson School of Management at UCLA. Topical Expertise: Alternative Investments · Economics

Leave a Reply

Your email address will not be published. Required fields are marked *

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.