‘ECB and Fed are not in touch with the real world’

Monetair beleid

Leergeld keynote speaker Danielle DiMartino Booth spoke to the Flemish daily De Standaard. 'The whiz kids at the Federal Reserve and the ECB are too far from the common man to defend his interests.'

Much ink has already flowed about the effects of QE and the negative interest rate. Life insurers and pension funds have difficulty meeting their obligations. Savers hardly receive interest and invest their money in real estate and shares whose price is artificially inflated. ‘And the problem with artificially low interest rates is also that companies that are no longer creditworthy are still kept artificially alive. That does not accelerate economic growth, it just puts a brake on it ‘.