In the aftermath of the Great Recession, the worldwide central banks (U.S. Federal Reserve, ECB, etc.) have embarked on an unprecedented economic stimulus. Measures have included years of zero interest rates and massive purchases of government, mortgage and corporate bonds on a heretofore unseen scale. The goals of the bankers were to stimulate economic growth, employment, wages and importantly, bring back inflation. For years, prices barely moved as economies were flooded with cheap money. Central bankers were very concerned about deflation. This dynamic would have been unthinkable in the pre-Recession era. Hence the term “the new normal” was coined by renowned economist Mohammed El-Arian to describe the post crisis era.
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