Monetary policymakers are often described as heading into “uncharted territory”. The latest example is the Bank of Japan’s decision to introduce a target for ten-year yields. You won’t find a precedent of this policy in recent history. But the territory is not totally uncharted: we saw something very similar in the USA roughly seventy years ago.
As Mecklenburg-Western Pomerania goes, so goes the USA. You've never heard of this saying? That may about to change. The AfD's success in the north-eastern corner of Germany is making me a lot more worried about the outcome of the US election and bodes well for Donald Trump's chances to win the race to the White House.
Holidays often give you perspective. I write this blog post while enjoying a sunset looking out over the plains of the West Cape in South Africa. With calls for increasing fiscal leniency potentially growing louder, we believe that we are already on the way to helicopter money. If this proves to be the case, what could the implications be for different asset classes?