Washington Post (08/26/14) Ylan Mui
The consensus at the annual gathering of the world’s central bankers this weekend was that the power of monetary policy to drive global growth is nearing its limit. Further progress will now depend on whether government leaders are willing to step up to the plate. The academic research and discussions at the conference organized by the Federal Reserve Bank of Kansas City underscored that many of the roadblocks to faster growth cannot be removed by monetary policy. “The needed reforms lie outside the mandate of central banks and fall squarely in the laps of elected officials,” said economist Peter Henry, dean of the business school at New York University. “It will do no good if central bankers give the labor market room to grow if politicians shoot the recovery in the foot.”
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