In 2015 we have seen central banks across the globe easing monetary policy well over 100 times, an unprecedented amount of global easing.  The policy response to potentially damaging global deflation has been questioned on many levels but suffice to say the excessive easing seems to have avoided a collision with a glacier – for now. 

Three of the biggest central banks on the planet (ECB, Japan, China) are in full easing mode while the US looking to start removing the generous accommodation in order to normalize the curve once again.  Will this action from the biggest economy in the world upstage the aggressive easing of the rest of the world?  I doubt that will occur, as telegraphed by the Fed it will take years to get the rate structure back to a normalized curve.

How much has central bank easing helped global growth?  Some evidence presented shows that it does not grow an economy but merely provides a spark, growth can come from aggressive fiscal and tax policy.  As Chair Bernanke said once, ‘monetary policy is not a panacea‘, an elixir to wipe away all misery. 

Can banks continue to ease policy into the future?  As we have seen with the Fed’s QE and zero interest rate policy the time line is open-ended until the central bankers are satisfied with progress.  So, the answer is yes.   Last week, ECB Chair Mario Draghi boosted forecasts very slightly for Eurozone GDP in 2015 and 2017, leaving 2016 unchanged.  We could call this progress, albeit slow.  Further, he announced more monetary stimulus to come (but falling far short of traders’ expectations).