Central banks have reduced official interest rates to historically lows, either near zero (known as ZIRP or Zero Interest Rate Policy). Long term bond rates are also at historically low levels. In some parts of the world, interest rates are now negative; that is, you get paid to borrow and punished if you save. With interest rates bounded at zero, central bankers have turned to quantitative easing (“QE”), central banks purchase securities, primarily government bonds, to inject liquidity into the financial system. The balance sheets of major central banks have expanded from ... READ MORE
