Are the APP and the extraordinarily low interest rate still appropriate, given the current average macro-economic environment in the euro area?
In recent years, central banks have managed to prevent markets from worrying about guessing the direction of their policies by giving them indications that have not been too dramatic or overly inaccurate.
2016 was supposed to be the year that the Federal Reserve "normalized" its policies. As much as two years ago -after years of a near-zero target rate- the Fed was swearing that it would begin to raise rates back to "normal" levels and cut its balance sheet. That never happened.
The different issues considered in the present work lead to at least five major conclusions, which we will explain below. The first conclusion has to do with the historical nature of the crisis and its depth.
The year 2016 had hardly begun and the losses in different stock markets around the world care were already colossal: nearly 8 trillion US dollars during the first three weeks of January according to the calculations of the Bank of America Merrill Lynch.
The first decade of the 21st century saw an international financial crisis comparable only to that of the 1930s, known as the Great Depression.
It lasted approximately from 2012 to 2015, when developed countries began to emerge from the recession, with difficulty, and there has not been a real improvement rather only a slight recovery, which may be heralding an even more serious future crisis.