by Ron Rimkus
The Economic Times
Who are today’s Drs Frankenstein? Haruhiko Kuroda at the Bank of Japan, Mario Draghi at the European Central Bank (ECB) and Janet Yellen at the US Federal Reserve. They each have a monster in their castle.
Central bankers have embraced extraordinary monetary policies to create economic growth where none would exist. How have they done this? By printing lots and lots of money and injecting it into the system through massive bond purchases. The aggregate bond market is growing, but bonds are being purchased and locked away in central bank dungeons faster than new bonds are being issued. At the present pace, central banks will soon run out of bonds to buy.