Who Has Captured the Banks?

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Or are we the next Japan?

5:05 PM, May 3, 2012 • By DALIBOR ROHAC

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This might be a deliberate policy of central bankers catering to two powerful constituencies. While friendly relations have always existed between central bankers and large financial institutions, the rise of retirees as an important interest group, catered to by politicians and central bankers, is a more recent phenomenon, driven by the West’s demographics. And as we follow Japan’s lead, numerous economic headaches await us down the road.

Dalibor Rohac is an economist at the Legatum Institute in London.