Created by this policy imbalances are most easily visible on the bond markets. Although the debt bu

The new year came up with a series of news that international markets reported positive. Fiscal ibfc gap in the United States was at least temporarily bypassed, the financial burdens of the Euro area retreated into the background, and the Chinese economy showed ibfc more growth than expected. In confirmation of all this infamous "Index of fear" (aka VIX [1]) slumbers of five-year low. However, there is no indication that 2013 will be able to soften the stark contrasts between what is happening in the financial markets ibfc and processes in the real economy.
In recent years central banks drowned in the financial sector trillions of newly printed dollars, euros, yen and pounds in the hope that this investment will move the economy and, in turn, would work. But while financial markets go up, the real sector continues to perform ibfc weakly. The gross domestic product of the United States ibfc reported a decline on an annual basis in the last quarter of 2012, estimates of new recession in the Euro area last year coming in and developing economies remain far from pre-crisis levels of growth. ibfc
In the last quarter of 2012, Ben Bernanke and Mario Draghi failed to break down another bastion of market skepticism - the market for government securities. In the autumn of 2012, as Mario Draghi and Ben Bernanke, ibfc stated clearly their intention to debt markets in something ibfc as a financial protectorate, in which power is not the laws of supply and demand in the free market, and the mood of the leading central banks. Commitment to indefinitely (at least for now) buying government debt reassure investors and loosened the rope around the neck of indebted governments in the Euro area and the US. In turn, the Bank of Japan declared war against its own currency, engaging with its permanent devaluation.
Hardly ever in the world was so apparent that the more aggressive is the intervention of central banks, the more the financial system encapsulates and losing touch with what is happening in the economy. In both the current market situation money is not worth anything, which is why deficits and government debt finance ibfc cheaper and not perceived as an immediate problem. What is happening in the economy bottom ibfc does not matter, at least for now. All this made popular financial portal Zerohedge ask, "How many central banks are necessary to ensure the 1% GDP growth in the world?".
The fact that the ECB and the Federal Reserve pursue different objectives, using similar policies, shows the limited tools with which a central bank is trying ibfc to influence what happens in the real economy. Leaving aside the suppression of interest rates, ibfc the ECB is trying to secure the shaken confidence in the integrity of the monetary union and to refinance the banking system [2]. The Federal Reserve, in turn, is trying to re-inflate the housing bubble, which cause the so-called. "Wealth ibfc effect". The idea is artificially high price of housing to make Americans feel wealthier and start potreblyavat or invest, creating jobs [3]. Both banks, however, are facing a similar problem - in conditions of weak economic activity, depressed consumption, high public debt, highly regulated labor market and high tax burden, the money just avoid the real economy.
Despite being able to inject a certain amount of money in the system, the ECB and the Fed can not direct these funds to the real sector, without the mediation of commercial banks. Due to the uncertain economic conditions, ibfc however, ibfc they, as well as businesses ibfc are reluctant to lend and borrow accordingly. So money stays at the top of the pyramid, distorting incentives to investors, eliminating the risk factors and generating hazardous to the entire financial system chronic imbalances. Although the dual mandate of the Federal Reserve - to maintain price stability, but also to support employment, Bernanke can do just as much to increase employment as his colleague Draghi. The relationship between modern monetary policy and the labor market is dependent ibfc on many other factors and conditions that the idea of making monetary policy to the expected changes in the unemployment rate is virtually impossible.
Created by this policy imbalances are most easily visible on the bond markets. Although the debt burden on the neck of the US and those of many European countries, their debt continues to search.
At the end of the third quarter of 2012 the government debt of the euro area countries reached ibfc an average of 90.0% of the GDP of the member countries of the monetary union. This means an increase of 3.2% of GDP compared to the third quarter of 2011. In the European Union as a whole, things are not much better. The ratio of debt to GDP increased in 22 EU countries ibfc and declined in only five. One of the five countries vol