The Central Bank Narrative Has Collapsed…Here’s What Happens Now

Cross-posted from City Wire

The long-held central bank narrative has collapsed and policymakers are only now admitting that their role has moved into a new, unexpected realm.

That is according to University of Southampton Prof. Richard Werner, who gave the keynote address at Citywire’s first-ever Fixed Income Retreat.

Speaking to an audience of pan-European fund buyers, the noted economist dispelled many of the myths surrounding the interaction between central banks, interest rates and growth.

Dr. Werner also said that investors need greater, local-level coordination to make sure central banks create the correct monetary policies. Instead, the exact opposite could end up happening: central banks take over the money creation role from commercial banks while abolishing physical cash, which “would dramatically change the world financial system like we’ve never seen.”

Click here to watch the interview

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