Global 'cheap money' prompts Russian call for caution

Moscow

RUSSIA'S central bank governor isn't sure if the unprecedented monetary easing around the world is a killer or a cure for the global economy.

With the world awash in cash thanks to the stimulus programmes of central banks from Europe to Japan, investors have poured money into projects that are damaging productivity while doing nothing to ease market volatility, governor Elvira Nabiullina said in an interview with CNBC broadcast on Friday.

"The era of cheap money has indeed led to the kind of situation where financing and investment were put into projects with low productivity, which all things being equal and under tougher monetary conditions would not have been financed," Ms Nabiullina said. "But at the same time, because of the continued easing of monetary policy in many countries, there is also the possibility that a highe…