Financial Insights - November 2013

| Point of View

In this edition Prof. J. Sijben looks at the effect the Fed exit (winding down loose, unconventional monetary policy and then gradually raising interest rates) will have on interest rate expectations in the medium term. It will kick off a process of interest rate adjustment, with short- and long-term interest rates moving to more “normal” levels of 3%-4% and 5%-6% over the years to 2017. As the United States is growing faster than the other wealthy countries, the process will start earlier there. Inflation tolerance will rise gradually towards 4%-5%.
 
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Capgemini Financial Services offers, in cooperation with Prof. dr. Jacques Sijben and Prof. dr. Clemens Kool, quarterly a view at the current development at the global financial world.