Papadia: Monetary Policy Has Been Pushed to the Extreme

The transcript discusses the ability of central banks, particularly the ECB and BOJ, to deliver monetary policy effectively post-financial crisis. It explores whether central banks are reconsidering their strategies due to unintended consequences like a flat yield curve. The discussion includes Abenomics and the need for more effective policy measures beyond monetary policy. The effectiveness of current monetary policies is questioned, with suggestions for a steeper yield curve to aid banks. The ECB's asset purchase program is also examined, with potential changes anticipated in December.

What are the potential consequences of a very flat yield curve as discussed in the text?

What is the significance of the 'three arrows' in the context of Abenomics as mentioned in the text?

How does the speaker perceive the current effectiveness of monetary policy delivered by central banks?

What does the speaker imply about the future profitability of banks in relation to current low rates?

What changes to the ECB's asset acquisition mechanisms are suggested in the text?