Summary of The Only Game in Town: by Mohamed A. El Erian | Includes Analysis

By . IRB Media

Inside this Instaread Summary of The Only Game in Town:

Overview of the book

Important People

Key Takeaways

Analysis of Key Takeaways

• Language: English
• Publisher: IRB Media
• Release date: Mar 13, 2016
• ISBN: 9781945048395

. IRB Media

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Overview

Mohamed A. El-Erian’s The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse is a discussion of the role of central banks in confronting the current financial and economic dangers facing the world. Following the financial collapse of 2008, central banks pursued aggressive and innovative policies in an effort to stabilize the world economy. Policy makers have failed to enact the measures necessary to ensure growth, and so central banks have had to continue to innovate and stabilize. In the long term, however, central banks cannot sustain growth on their own. If governments do not take steps to create growth and regulate financial markets, there will be another financial crisis.

In 2007-2008, the US housing market failed, plunging the world into a financial crisis. Central banks lowered interest rates and pursued a novel policy of purchasing large amounts of assets. This has resulted in strong stock markets, especially in the United States, and some growth. However, the policy is not sufficient to induce robust growth and job creation. Thus, most growth goes to those with money to invest, fueling inequality and increasing discontent. This has led to the growth of extreme political movements on the left, such as the Greek party Syriza, and on the right, such as the Tea Party in the United States and right-wing