Financial Insights - September 2013

| Point of View

In the September edition of Financial Insights Prof. dr. Clemens Kool outlines his vision for the monetary policy.
In recent years, unconventional monetary policy has played a very important role in helping to stabilise the financial system. At the same time, this has meant creating monetary conditions that are simply unsustainable in the medium to long term. This means that at some point, interest rates will have to rise again and the excess liquidity will have to be skimmed off. This scenario will pose a huge challenge to central banks, who will have to tread very carefully to ensure that they do not become part of the problem instead of being part of the solution. Once this necessary transition process has been successfully completed, another problem awaits, namely that the old monetary policies and strategies are no longer capable of solving the problems faced by this brave new world.
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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.