Big Reads on Economics: Central Bankers Ponder Easy Money Risks

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Global central bankers are still dealing with the easy money era they hoped they would be exiting by now.

Officials at the Federal Reserve and European Central Bank are among those turning a wary eye toward surging asset prices, while their Australian counterpart is providing a road map for how it could continue to ease monetary policy. The ECB is also considering whether its inflation target needs reviewing.

This topic and others are among the collection of this week’s analysis, scoops and enterprise from Bloomberg Economics:

• Global Risk Binge Gives Central Bankers Cause to Shudder
• RBA Says QE Is Option at 0.25%, Doesn’t Expect to Need It
• ECB Review May Reset Inflation Aim to 2% But Struggle to Do More

Craig Stirling and John Ainger report how central bankers are fretting at the risky behavior their low interest-rate policies are encouraging. Paul Gordon and Yuko Takeo show how the ECB is set to tweak its inflation target in an upcoming review. Michael Heath sums up the Australian outlook as its central bank chief explains his approach to unconventional policy.

• U.S. Presses Case to Defang the Global Economy’s Trade Referee
• A U.S. Offer to Keep the WTO Alive Comes With Painful Conditions

Bryce Baschuk details how the U.S. is trying to overhaul the World Trade Organization, a push which may render the Geneva-based institution inoperative.

• Can the Fed Fight Inequality? Kashkari Says Yes, Hires an Ally
• Personal Income Booms in States With Decisive Role in 2020 Race

As income inequality proves one of the major economic debates of our time, Matthew Boesler looks at how the Federal Reserve is addressing an issue that was once left for governments rather than central bankers. Alex Tanzi and Wei Lu outline how personal income will impact next year’s presidential election in the U.S.

• Mexico May Speed Up Tax Overhaul If 2020 Revenue Disappoints
• Chile Seeks to Spend Its Way Out of Crisis at a Hefty Price
• Argentina Plans Simultaneous Debt Talk With IMF and Bondholders

Latin America’s economic troubles are forcing a response from governments. Onetime poster child Chile may boost spending, according to Eduardo Thomson. In Argentina, President-elect Alberto Fernandez plans to hold debt negotiations with private bondholders and the International Monetary Fund at the same time, reports Jorgelina do Rosario. Eric Martin and Andrea Navarro interviewed Mexican Finance Undersecretary Gabriel Yorio on what its government may do if tax revenues disappoint.

• Why Superyacht Sales Are Key to the Global Economy (Podcast)

The Stepahanomics podcast with Stephanie Flanders looks at what the business of flashy superyachts has to do with the health of the U.S. economy.

To contact the reporter on this story: Simon Kennedy in London at skennedy4@bloomberg.net

To contact the editors responsible for this story: Stephanie Flanders at flanders@bloomberg.net, Zoe Schneeweiss, Fergal O'Brien

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