Ben Bernanke suggested in June that the pace of quantitative easing might slow by the end of the year. Global markets dropped by 4 per cent in two days. It has taken several weeks – and carefully reassuring congressional testimony from the US Federal Reserve chairman – to calm them.
Asset price movements of this kind are not unusual – but they are hard to explain with conventional economic theory. Sometimes they turn into financial tsunamis, like the 2008 crisis, which leave devastation and misery in their wake...............................................Full Article: Source
|