With speculation about QE3 increasing, and the ECB intervening in European bond markets, worries about the losses that central banks could incur on their holdings have resurfaced. But can losses grow sufficiently large for the central bank to go broke? As it turns out, central banks do not bankrupt easily, although big losses can be problematic nonetheless.
Is the US turning into Japan?
Three years into the recovery US growth remains feeble. The US is starting to look more and more like Japan in the 1990s â€“ but it is not too late to draw lessons.
Full report here.