The limits of easy monetary policy: Ultra-easy monetary policy may in itself also feed new excessive credit booms.

Globally, central bank rates remain close to all-time lows. But there are reasons to believe that monetary policy by central banks may have become too loose in the developed world. Financial instability risks are on the horizons. We therefore should take any further potential stimulus measures by the Central Banks with a pinch of salt. For asset prices to rise, it takes more than just a monetary stimulus.