The biggest monetary experiment in history is coming to an end

Monetary policy killed the market-based economy

The biggest monetary experiment in history, when central banks replaced politicians as decision makers, is coming to an end.

This period of low and negative interest rate policies coupled with quantitative easing, while necessary, killed the market-based economy and increased the interdependency between markets and sovereigns.  This is the backdrop that led to Brexit and President Trump, and it is one we are now witnessing in Europe where the Italian drama, the weakest link in the eurozone, is the latest to unfold. The Italian economy is decelerating. Our leading macro indicator, credit impulse, is running at -2% of GDP, the lowest level since 2013. 'Draghi will be asked some tricky questions on Italy': ...