JPMorgan’s Frenkel Says Monetary Policy Has Been Overburdened

The video discusses the potential triggers for a recession, emphasizing the role of policy decisions and global economic interdependence, particularly between the US and China. It highlights the challenges faced by central banks in maintaining economic stability, given the constraints of low interest rates and market pressures. The concept of contagion in a globally interconnected economy is explored, along with the risks of financial instability and bubble formation. The video concludes with a discussion on the need for innovative policy approaches to ensure future economic stability.

What factors are mentioned as potential triggers for a recession?

How does the speaker describe the current state of the US economy compared to other industrial countries?

What role do central banks play in the context of economic stability according to the speaker?

What are the implications of negative interest rates as discussed in the text?

In what ways does the speaker suggest that the interconnectedness of the global economy affects monetary policy?

How does the speaker view the relationship between monetary policy and financial stability?

What does the speaker suggest about the effectiveness of monetary policy in the current environment?