World Economy in The Grips of “Moral Hazard”

... It sounds like the name of a failed town in a Clint Eastwood western. We all live there now. – The Wall Street Journal (2008) In the past several weeks the world’s financial markets have re-entered into higher volatility mode as the ongoing trade dispute between the two largest economies is dashing hopes of speedy improvement in US-China relations. The uncertainty afflicting the markets is further exacerbated by the contradictions between the Trump camp and the Fed, with increasing trade tensions forcing the Fed to accommodate the negative effects on the US economy through monetary ...