Cheap money no alternative to structural reforms

Speculations on exactly when the US Federal Reserve will raise interest rates are high, because it could be a game changer moving global markets in significantly different directions. Speculations are also rife on why the Fed has dragged its feet on the matter.

But the fact that the world economy has still not emerged from the shadows of the 2008 global financial crisis should justify an immediate end to the unprecedented experiment of zero interests that the US led the world into.

The sooner that happens, the faster necessary reforms can be implemented in all countries and the better the chances will be for the world economy to improve. The resulting elimination of uncertainties in the global financial market, rather the world economy as a whole, will be more than welcome for China which is implementing far-reaching economic reforms to survive its difficult slowdown.