Talking About Income
Damon Bi, Analyst
The post-GFC era is certainly unique for Australian superannuation account owners, pensioners and income investors. With interest rates in developed economies virtually at zero, there is little room left for conventional interest rate policy to stimulate growth. Central banks have increasingly resorted to unconventional monetary easing programmes as an alternative measure.
Whereas the subsequent effect on growth has been marginal/controversial at best, this unprecedented amount of liquidity has proven to be very effective in pushing up the price of high-yield assets across the globe.
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