More QE is not the answer to Fiscal policy not taking advantage of near zero yields to borrow more and spend on infrastructure. #StepUpFiscal
QE beyond a point distorts markets and incentives that a well oiled financial system requires to function with integrity. USE of FISCAL TOOLS must be encouraged as opposed to overuse of Monetary policy.
Governments globally have allowed Central banks to pump prime economies using QE-But now the global economy requires replenishment of the slack(collapse) in private sector demand by Fiscal spending in infrastructure. Global phasing out of QE while Govts. start filling up the demand gap, latter following the former is required to take advantage of extremely low soveriegn yields.
The age of deflation can only be tackled by Govt investment in infrastructure globally filling the slack(collapse) in private sector demand.
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