Stephen S. Poloz

Monetary Policy: Out of Ammunition?

David Zervos, Joachim Fels, Pippa Malmgren, James McCormack, Stephen S. Poloz

At the Milken Institute panel, David Zervos, Joachim Fels, Jakob Frenkel, and Pippa Malmgren analyzed the diminishing efficacy of traditional monetary tools and the potential for central bank coordination following the 2016 G20 Shanghai meeting. The experts debated the risks of unconventional strategies such as negative rates, "helicopter money," and sovereign debt monetization while contrasting their impacts on global currency dynamics and emerging market stability. Furthermore, the discussion highlighted a divergence between improved bank solvency due to regulation and persistent systemic vulnerabilities within the shadow banking sector, alongside arguments for prioritizing private-sector innovation over state-led fiscal stimulus to address sovereign debt burdens.