Sunday 28 April 2013

New CB's role

A note by WB chief economist. I see the new trend that the central bank's role is changing from a traditional lender of last resort to a more proactive financial agency to enhance growth and address unemployment, which was traditionally realm of government's structural reform. I am a little bit concerned on this trend, because it will surely buy time for the government to do its homework in advanced economies - structural reform in labor market, establishment of social security system etc.  

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