As Robin Harding writes here, Bank of Japan governor Masaaki Shirakawa’s speech on the problems of aggressive monetary easing may not have been totally comfortable for his hosts at the Federal Reserve.
Mr Shirakawa was not alone. In comments released today from the same Fed event, Jaime Caruana, head of the influential Bank for International Settlements, also warns on the dangers of keeping monetary policy too loose for too long.
More uncomfortably for the Fed, the BIS general manager signals that he thinks the major central banks have strayed far beyond the bounds of monetary policy and into the domain of fiscal policy. Read more