There will be many challenges as the Federal Reserve and other major central banks exit their unconventional monetary policies and normalize their balance sheets. Ultra-low interest rates, quantitative easing, and forward guidance have increased risk taking and pumped up asset prices. Rising volatility in global stock markets reflect, in part, the uncertainty of future monetary policy. In the new issue of Cato Journal, authors focus on four major issues: (1) the case for a rules-based international monetary system, (2) normalizing monetary policy, (3) the future of currency, and (4) the future of China in the global monetary system.
