Laplace’s Demon and Limits to Central Banks’ Ability to Stabilize Economy

Top Quote The real economy is fumbling, and it is carrying a huge stack of leveraged debt of market players. Any attempts to stabilize the real economy with insufficient information will not succeed. End Quote
  • (1888PressRelease) April 12, 2020 - In last three weeks, the major central banks in the world have gone in an overdrive to stabilize the markets by actively participating in the market and the market is hoping for a V shaped recovery post Covid19 pandemic curve flattening.

    Shailesh Dhuri, CEO Decimal Point Analytics, has published a recent article titled “Laplace’s Demon and Limits to Central Banks’ Ability to Stabilize Economy” which argues that Central banks do not have the powers of Laplace’s demons which the market assumes it has. He also highlights the fact that the real economy is fumbling due to the social distancing and the leveraged debt positions of the market players. Any attempts to stabilize the real economy without enough information might not succeed.

    Click on the below link to read the full article
    https://www.decimalpointanalytics.com/resources/blog-detail/in-last-three-weeks-the-major-central-banks-in-the-world-have-gone-in-overdrive-to-stabilize-the-ma/408

    About Decimal Point Analytics
    Decimal Point Analytics is a financial research and analytics company incorporated in 2003 with headquarters at Mumbai. It is an independent, management owned company, which provides actionable analytics to financial services companies. It offers customized solutions to investment management businesses that address specific challenges. It enables these customers to supplement their operations with additional resources and augment research processes using Artificial Intelligence (AI) technologies like Machine Learning (ML), Natural Language Processing (NLP) and Big Data.

    Decimal Point Analytics has presence across four global locations including the United States, UK, and India.

    Visit the website at www.decimalpointanalytics.com

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