Streetwise: When central banks unexpectedly go into full reverse, watch out, says jmackin2
concentrate on fighting inflation
. In Japan and Europe, the central banks are battling the markets, not merely price rises. That’s leading to some very strange, even contradictory, policies. The troubles of the three central banks mean investors should prepare for the sort of low-probability, high-threat risks that lead to extreme shifts in prices. When central banks unexpectedly go into full reverse, watch out. Let’s go through the risks.
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