"We've Reached The Limit": Denmark Central Bank Chief Says Monetary Policy Is Exhausted
For the likes of Paul Krugman, the Riksbank provides a cautionary tale for central banks wary of committing so-called “policy mistakes.”
Back in 2010, the bank started to hike rates. That decision halted a decline in unemployment and shortly thereafter, it became apparent that “the rock star of the recovery had turned itself into Japan." Or so Krugman says.