Given how often ‘consensus earnings expectations’ are quoted in the financial press and feature in investor discussions there is surprisingly little awareness of what consensus really is. What does it really measure? Who contributes to it? What are its biases?
When the global financial crisis broke, central banks in the West copied from the Japanese playbook and introduced quantitative easing to boost growth and inflation. Now it is Japan's turn to borrow from the West with NIRP (negative interest rate policy) - are they running out of options?