Article Review #10

In this article the authors convey that participants have internalized a faith in which central bankers are responsible for market outcomes. Then they go on and explain how monetary policy is a mold-able subject, that can be easily played with when it comes to politicians and big power. They also attack the Central Bank Omnipotence by stating that is turning into the Narrative of central bank competition, which in return means that difficulties have risen due to gigantic global debt. Q3 and Q4, being peaks in the economy in 2014, have been in decline, and then the authors go on stating how such low-high percentage numbers cannot be unless we are already in a recession. The contractions in exports are affecting trade levels and the recession is highlighted. Due to such things, Global growth is contracting, trade values from US, Asian and European worlds will pop the remains of the monetary policy.  The domestic political pressure to raise protectionist barriers and get a great part of the smaller trade. The government uses depreciation in the monetary system as its greatest weapon to keep business, or "factories", running. Meaning that China will have to cut prices in order to devalue its currency. The author then goes and states,"Competitive death spiral of monetary policy which will put everyone in worse positions shrinking the global pie further", meaning that due to such monetary policies and methods the global pie is to shrink even more!! To end the article the prisoner's dilemma is applied to real life. When global trade shrinks, the payoffs from monetary policy defections are no longer less than the payoff of monetary cooperation, defect is the domain, and there's a free rider who gets to take advantage of all others. Meaning "survival" mode.