The Singapore economy is in a bit of a rut. A space constrained, population constrained economy like Singapore needs to look to unconventional economic models for growth. It cannot target population growth, capital accumulation and technological innovation without bound. Population growth meets space constraints and population density issues sooner or later. By all accounts, it

Every so often the free market fails to sort itself out and the economy grows more slowly than it should, according to the economists, bankers and investors. Measures need to be taken to spur economic growth so that it can run at its potential again. Having lowered interest rates to zero or close to zero

Global economic growth has been slow and inflation has been stubbornly low despite efforts by central banks to raise them. The first round of unconventional policy involved central banks buying bonds and other assets and increasing their balance sheets. The strategy has only been moderately successful and is probably at the point of diminishing marginal

Negative interest rates.   Hmmm. I’ve seen this kind of liquidity provision before…   Now I remember!              

Policy: In December, the ECB extended QE from September 2016 to March 2017. Markets did not think it was sufficient, spreads between peripheral bonds and bunds widened, the EUR strengthened and equity markets sold off. In late January the BoJ cut rates into negative territory and was rewarded with a stronger JPY and weaker equity