By Raghuram G. Rajan via Project Syndicate
Raghuram Rajan argues that central banks’ phasing out quantitative easing (QE) would be the first step toward normalizing monetary policy and ultimately alleviating pressure on asset managers to produce impossible returns in a low-yield investment environment. He maintains that QE shortens the maturity of government debt and thus causes an increase in government and central bank exposure to rising interest rates.
Strategika no. 74
In a new issue of Strategika, scholars provide the historical background of the current impasse in the Joint Comprehensive Plan of Action with Iran. They also discuss the dimming prospects of Tehran abandoning its nuclear program via diplomacy and whether the United States has the credibility to broker a resolution acceptable to all parties—one that can realistically lead to peace and stability in the Middle East.