Research Team at Goldman Sachs, suggests that nearly eight years after the onset of the Global Financial Crisis, growth and inflation in the major developed economies remain tepid despite generally aggressive policy action by central banks over the same period.
“With even unconventional measures apparently coming up short, some market participants worry that central banks are running out of tools to boost demand. At the same time, high debt levels continue to constrain governments from pursuing the other key channel for stimulus—fiscal expansion. Whether policymakers are indeed out of bullets and what policy options remain are Top of Mind.”
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