Here is a report by a UK equities research firm:
Changes are afoot inside the world‟s major central banks… After more than a decade of inflation targeting, monetary authorities are, it seems, increasingly minded to go for growth, as the problem is no longer rising prices, but unemployment.
The long-term consequences of this shift – which my colleague Jim Leaviss has termed “central bank regime change‟ – remain uncertain… With its incoming governor recognised as having one of the most informed understandings of the new regime, the Bank of England looks set to play an increasingly important role in the global monetary policy revolution. UK shares could stand to benefit.
I agree. When the central bankers get their act together, which they are doing, nominal incomes will rise, whipping up a tailwind for the recovery.
Now consider the price of of gold which, according to my view, should drop when the markets get comfortable with the bankers’ strategy. It has.
Not Unreasonable 