Over the past few years investors have turned to central banks for answers when it comes to stimulating growth. But with the Bank of Japan having moved to negative interest rates, many investors worry the banks are running out of ideas.
Mr Wade suggests central banks can and will do more, but that they are currently “firing blanks”.
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“Should we have a deflationary shock there will be doubts about the ability of the central banks to dig us out of the hole, and the call for government action would become deafening,” he says.
Ellie Duncan is deputy features editor at Investment Adviser
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