Monetary authorities around the world are using an old playbook: lowering interest rates and the value of their currency in the hopes of stimulate growth in their region. Unfortunately, it won't work in today's VUCA (volatile, uncertain, complex, and ambigous) environment.
Our blog last week, "Global Uncertainty Trumps Lower Interest Rates" was on the mark. It may be helpful to read it again. Our thesis was that there was little or no corporate demand for money no matter what the interest rate was due to global uncertainty centered around trade.
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