Market Vigilantes Slayed by Central Banks: David Stubbs

What was the primary factor affecting market dynamics as discussed in the first section?

• Technological advancements

• Supply disruptions in the Middle East

• Interest rate changes

• Political instability

How have central banks responded to market conditions according to the second section?

• By increasing interest rates

• By focusing solely on inflation control

• By reinforcing their support for recovery

• By reducing market interventions

What is the role of market vigilantes as discussed in the second section?

• To stabilize currency exchange rates

• To support central bank policies

• To regulate financial institutions

• To challenge central bank actions

What is the relationship between equity market performance and central bank actions as discussed in the third section?

• Equity markets only respond to fiscal policies

• Equity markets are directly linked to central bank policies

• Equity markets are unaffected by central bank actions

• Equity markets are driven by technological changes

According to the third section, what is the central banks' concern regarding market volatility?

• It can stabilize currency values

• It can lead to increased inflation

• It can boost economic growth

• It can damage the real economy