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Trends-Tendances - Belgium | Tuesday, July 8, 2014

Central banks' monetary policy has failed

The Dow Jones Stock Index crossed the historic mark of 17,000 points for the first time last week. But while the indexes are breaking record after record the real estate and art markets are overvalued, experts say. The monetary policy pursued by the central banks is backfiring, the business magazine Trends fears: "The central banks have flooded the planet with liquidity to keep interest rates low for as long as possible, in a bid to revive our economies. But the problem is that this money being released by the central banks doesn't reach the real economy. … In actual fact the banks are lending less and businesses are investing less because they're still afraid of the future. Rather than being turned into loans, this money is going into assets like stocks, bonds, or real estate."

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