--- title: "Meaning & Key Takeaway of: The world changes! So we're in a…" description: "\"The world changes! So we're in a situation today where the only policymakers that have flexibility are central banks. But they don't have the instrumen..." image: "https://sms4smile.com/quotes/i/f80/mohamed-el-erian-19946_central-bank_the-world-changes-so-we-re-in-a-situatio_2605699.jpg" --- # The world changes! So we're in a situation today where the… ![“The world changes! So we're in a situation today where the only policymakers that have flexibility are central banks. But they don't have the instruments! So they've had to experiment, and the more you experiment, the more uncertainty and the higher the risk of collateral damage.” quote by Mohamed El-Erian](https://sms4smile.com/quotes/i/f80/mohamed-el-erian-19946_central-bank_the-world-changes-so-we-re-in-a-situatio_2605699.jpg) [Download](https://sms4smile.com/quotes/i/f80/mohamed-el-erian-19946_central-bank_the-world-changes-so-we-re-in-a-situatio_2605699.jpg) [Open image](https://sms4smile.com/quotes/i/f80/mohamed-el-erian-19946_central-bank_the-world-changes-so-we-re-in-a-situatio_2605699.jpg) > “The world changes! So we're in a situation today where the only policymakers that have flexibility are central banks. But they don't have the instruments! So they've had to experiment, and the more you experiment, the more uncertainty and the higher the risk of collateral damage.” [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Central banks hold flexibility but lack appropriate tools, leading to experimental policies that increase uncertainty and risk of unintended consequences. **In simple terms:** Banks can act but lack proper instruments. Key Takeaway Develop better policy tools for banks. Themes economics monetary policy risk uncertainty Mood analytical cautious Type economic strategic When to use this quote - inflation control - interest rate adjustments - quantitative easing - crisis response Key Concepts central banking policy design financial stability Questions to Reflect On - What tools could banks use? - How to balance innovation and stability? A Different Perspective Experiments may cause collateral damage. ★ ★ ★ ★ ★ No ratings yet [Central bank](https://sms4smile.com/quotes/about/central-bank/) [Central banks](https://sms4smile.com/quotes/about/central-banks/) [Collateral](https://sms4smile.com/quotes/about/collateral/) [Collateral damage](https://sms4smile.com/quotes/about/collateral-damage/) [Customer](https://sms4smile.com/quotes/about/customer/) [Damage](https://sms4smile.com/quotes/about/damage/) [Experiments](https://sms4smile.com/quotes/about/experiments/) [Flexibility](https://sms4smile.com/quotes/about/flexibility/) [Higher](https://sms4smile.com/quotes/about/higher/) [Instruments](https://sms4smile.com/quotes/about/instruments/) [Policymakers Flexibility](https://sms4smile.com/quotes/about/policymakers-flexibility-1983616/) [Risk](https://sms4smile.com/quotes/about/risk/) [Risk Collateral](https://sms4smile.com/quotes/about/risk-collateral-1983617/) [Situation](https://sms4smile.com/quotes/about/situation/) [Today](https://sms4smile.com/quotes/about/today/) [Today Policymakers](https://sms4smile.com/quotes/about/today-policymakers-1983618/) [Uncertainty](https://sms4smile.com/quotes/about/uncertainty/) [World](https://sms4smile.com/quotes/about/world/) ## Related quotes > [“If we take out one, we have to take out all. We can't risk collateral damage." "Say 'collateral damage' again. That sounded sexy.”](https://sms4smile.com/quotes/brigid-kemmerer/if-we-take-out-one-we-have-to-take-out-all-we-can-t-risk-collateral/) [Brigid Kemmerer](https://sms4smile.com/quotes/author/brigid-kemmerer/) > [Guns are part of the American psyche, aren't they? This is collateral damage for having a Wild West mentality. It's intrinsic to the American…](https://sms4smile.com/quotes/nick-cave/guns-are-part-of-the-american-psyche-aren-t-they-this-is-collateral/) [Nick Cave](https://sms4smile.com/quotes/author/nick-cave/) > [So here we have it. The equivocating distinction between civilisation and savagery, between the "massacre of innocent people" or, if you like, "a clash…](https://sms4smile.com/quotes/arundhati-roy/so-here-we-have-it-the-equivocating-distinction-between-civilisation/) [Arundhati Roy](https://sms4smile.com/quotes/author/arundhati-roy/) > [We have 23 million people unemployed. They're America's forgotten people. It's the damndest thing that this much collateral damage is acceptable to this \[Barack…](https://sms4smile.com/quotes/lou-dobbs/we-have-23-million-people-unemployed-they-re-america-s-forgotten/) [Lou Dobbs](https://sms4smile.com/quotes/author/lou-dobbs/) > [The critical importance of honest journalism and a free flowing, respectful national conversation needs to be had in our country. But it is being…](https://sms4smile.com/quotes/juan-williams/the-critical-importance-of-honest-journalism-and-a-free-flowing/) [Juan Williams](https://sms4smile.com/quotes/author/juan-williams/) > [Rachel knew what she was doing. And when she didn't, she could improvise on the fly, coming up with options that left a lot…](https://sms4smile.com/quotes/kim-harrison/rachel-knew-what-she-was-doing-and-when-she-didn-t-she-could/) [Kim Harrison](https://sms4smile.com/quotes/author/kim-harrison/) > [In all the debate about Afghanistan, we don't hear much about our obligation to the wretched lives of Afghan women. They are being treated…](https://sms4smile.com/quotes/tina-brown/in-all-the-debate-about-afghanistan-we-don-t-hear-much-about-our/) [Tina Brown](https://sms4smile.com/quotes/author/tina-brown/) > [The only time Republicans will shake fists and point fingers is over a war delayed, one that isn't led by the US, or a…](https://sms4smile.com/quotes/ilana-mercer/the-only-time-republicans-will-shake-fists-and-point-fingers-is-over/) [Ilana Mercer](https://sms4smile.com/quotes/author/ilana-mercer/) > [It is the most painful thing to see how young children become collateral damage of wars, but when peace treaties are signed landmines do…](https://sms4smile.com/quotes/danny-glover/it-is-the-most-painful-thing-to-see-how-young-children-become/) [Danny Glover](https://sms4smile.com/quotes/author/danny-glover/) > [What I do know is that drones are a modern weapon. When used effectively, when taking out ISIS or terrorist leaders, that's pretty impressive.…](https://sms4smile.com/quotes/bernie-sanders/what-i-do-know-is-that-drones-are-a-modern-weapon-when-used/) [Bernie Sanders](https://sms4smile.com/quotes/author/bernie-sanders/) > [I'm collateral damage. I'm road kill. And in 72 hours, nobody is going to remember who I am nor are they going to care.](https://sms4smile.com/quotes/eric-massa/i-m-collateral-damage-i-m-road-kill-and-in-72-hours-nobody-is-going/) [Eric Massa](https://sms4smile.com/quotes/author/eric-massa/) > [Cameras help to minimize collateral damage, and very often, without a camera a missile cannot fire. Certainly, without a camera a drone can't function,…](https://sms4smile.com/quotes/judith-butler/cameras-help-to-minimize-collateral-damage-and-very-often-without-a/) [Judith Butler](https://sms4smile.com/quotes/author/judith-butler/) > [Asymmetrical warfare is a euphemism for terrorism, just like collateral damage is a euphemism for killing innocent civilians.](https://sms4smile.com/quotes/alan-dershowitz/asymmetrical-warfare-is-a-euphemism-for-terrorism-just-like/) [Alan Dershowitz](https://sms4smile.com/quotes/author/alan-dershowitz/) > [President Obama has never summarized the Obama Doctrine with such clarity, but here is what it would look like: 'I will undertake any military…](https://sms4smile.com/quotes/elliott-abrams/president-obama-has-never-summarized-the-obama-doctrine-with-such/) [Elliott Abrams](https://sms4smile.com/quotes/author/elliott-abrams/) > [Gun control laws don't work. What is worse, they act perversely. While legitimate users of firearms encounter intense regulation, scrutiny and bureaucratic control, illicit…](https://sms4smile.com/quotes/daniel-d-polsby/gun-control-laws-don-t-work-what-is-worse-they-act-perversely-while/) [Daniel D. Polsby](https://sms4smile.com/quotes/author/daniel-d-polsby/) ## More by Mohamed El-Erian > [Investors should be cautiously positioned as the global economy and markets face major uncertainties. The downgrade will be a further headwind to growth and…](https://sms4smile.com/quotes/mohamed-el-erian/investors-should-be-cautiously-positioned-as-the-global-economy-and/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [Investors should invest on what they know. The biggest mistake is to invest on what they don't know.](https://sms4smile.com/quotes/mohamed-el-erian/investors-should-invest-on-what-they-know-the-biggest-mistake-is-to/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [After many decades of Disney movies, we have been conditioned to expect princesses to fall in love quickly with their charming princes and 'live…](https://sms4smile.com/quotes/mohamed-el-erian/after-many-decades-of-disney-movies-we-have-been-conditioned-to/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [Today's reports confirm that, unfortunately, post-crisis America is still not back to its good economic self.](https://sms4smile.com/quotes/mohamed-el-erian/today-s-reports-confirm-that-unfortunately-post-crisis-america-is/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [I remember when I was growing up, you would go to a bank to open a deposit, and they'd give you a toaster. A…](https://sms4smile.com/quotes/mohamed-el-erian/i-remember-when-i-was-growing-up-you-would-go-to-a-bank-to-open-a/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [It is hard to imagine that, having downgraded the US, S & P will not follow suit on at least one of the other…](https://sms4smile.com/quotes/mohamed-el-erian/it-is-hard-to-imagine-that-having-downgraded-the-us-s-p-will-not/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [The global realignment is accelerating the migration of growth and wealth dynamics from the industrial world to the larger emerging economies.](https://sms4smile.com/quotes/mohamed-el-erian/the-global-realignment-is-accelerating-the-migration-of-growth-and/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [Falling entry barriers and lower access costs have significantly democratised participation, whether in production or consumption.](https://sms4smile.com/quotes/mohamed-el-erian/falling-entry-barriers-and-lower-access-costs-have-significantly/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [The one instrument that has relative political autonomy is monetary policy. Central banks do not need to go to Congress to get approval for…](https://sms4smile.com/quotes/mohamed-el-erian/the-one-instrument-that-has-relative-political-autonomy-is-monetary/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [For the next three years, we're going to see different economies work out different problems. For European economies, especially Greece, it would be through…](https://sms4smile.com/quotes/mohamed-el-erian/for-the-next-three-years-we-re-going-to-see-different-economies-work/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [Investors have to ask themselves two questions. How much can we grow our investments? And, can we afford our mistakes?](https://sms4smile.com/quotes/mohamed-el-erian/investors-have-to-ask-themselves-two-questions-how-much-can-we-grow/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [The once-unthinkable loss of the AAA rating will constitute a further hit to already fragile business and consumer confidence.](https://sms4smile.com/quotes/mohamed-el-erian/the-once-unthinkable-loss-of-the-aaa-rating-will-constitute-a-further/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [Because in the New Normal you are more worried about the return of your capital, not return on your capital.](https://sms4smile.com/quotes/mohamed-el-erian/because-in-the-new-normal-you-are-more-worried-about-the-return-of/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [As a whole, investors should welcome attempts to safeguard the integrity of markets. You need very clear rules applied to markets.](https://sms4smile.com/quotes/mohamed-el-erian/as-a-whole-investors-should-welcome-attempts-to-safeguard-the/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) > [America's downgrade may serve as a wakeup call for its policymakers. It is an unambiguous and loud signal of the country's eroding economic strength…](https://sms4smile.com/quotes/mohamed-el-erian/america-s-downgrade-may-serve-as-a-wakeup-call-for-its-policymakers/) [Mohamed El-Erian](https://sms4smile.com/quotes/author/mohamed-el-erian/) [Explore all 31 Mohamed El-Erian quotes ](https://sms4smile.com/quotes/author/mohamed-el-erian/) ## More Central bank quotes > ['Inequality' has become the political theme/slogan of our time in both Europe and the U.S., yet political leaders do not even bother to consider…](https://sms4smile.com/quotes/paul-singer/inequality-has-become-the-political-theme-slogan-of-our-time-in-both/) [Paul Singer](https://sms4smile.com/quotes/author/paul-singer/) > [There could be some compromise, but I think we have to stick to the provisions of the treaty, and the provisions of the treaty…](https://sms4smile.com/quotes/jacques-santer/there-could-be-some-compromise-but-i-think-we-have-to-stick-to-the/) [Jacques Santer](https://sms4smile.com/quotes/author/jacques-santer/) > [There is no doubt in my mind that as central banks begin to abandon the dollar, there will be an enormous amount of monetary…](https://sms4smile.com/quotes/porter-stansberry/there-is-no-doubt-in-my-mind-that-as-central-banks-begin-to-abandon/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [Monetary policy transmission encompasses the whole continuum of interest rates; of course, the central bank only determines the overnight policy rate.](https://sms4smile.com/quotes/urjit-patel/monetary-policy-transmission-encompasses-the-whole-continuum-of/) [Urjit Patel](https://sms4smile.com/quotes/author/urjit-patel/) > [The fear is that if the dollar falls below 50% of the currency basket held by commercial and central banks and insurance companies, there…](https://sms4smile.com/quotes/porter-stansberry/the-fear-is-that-if-the-dollar-falls-below-50-of-the-currency-basket/) [Porter Stansberry](https://sms4smile.com/quotes/author/porter-stansberry/) > [Repeal the entire Banking Act of 1933, and Austrian School economists will cheer, especially if the current system were replaced by a 100%-reserve competitive…](https://sms4smile.com/quotes/llewellyn-rockwell/repeal-the-entire-banking-act-of-1933-and-austrian-school-economists/) [Llewellyn Rockwell](https://sms4smile.com/quotes/author/llewellyn-rockwell/) > [In the old days we were the challenger brand competing against the big banks, but today I go round the world and I sit…](https://sms4smile.com/quotes/lloyd-dorfman/in-the-old-days-we-were-the-challenger-brand-competing-against-the/) [Lloyd Dorfman](https://sms4smile.com/quotes/author/lloyd-dorfman/) > [“The Fed is still on the same track.” Whatever you call it, the benign economic environment has supported a bull market since 2009, and…](https://sms4smile.com/quotes/anonymous/the-fed-is-still-on-the-same-track-whatever-you-call-it-the-benign/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [We've delegated politics to bankers. The European Central Bank is inside Deutsche Bank, and Deutsche Bank is inside the Bundesbank.](https://sms4smile.com/quotes/beppe-grillo/we-ve-delegated-politics-to-bankers-the-european-central-bank-is/) [Beppe Grillo](https://sms4smile.com/quotes/author/beppe-grillo/) > [Believe me. When you're talking about trust in government, you're preaching to the choir, whether it's on the financial side, the central banking side:…](https://sms4smile.com/quotes/rick-santelli/believe-me-when-you-re-talking-about-trust-in-government-you-re/) [Rick Santelli](https://sms4smile.com/quotes/author/rick-santelli/) > [Welcome to the age of paper money, where governments and central banks can manufacture as much money as they want without limit. Gold was…](https://sms4smile.com/quotes/llewellyn-rockwell/welcome-to-the-age-of-paper-money-where-governments-and-central-banks/) [Llewellyn Rockwell](https://sms4smile.com/quotes/author/llewellyn-rockwell/) > [By creating the European Central Bank, the member states exposed their own government bonds to the risk of default. Developed countries that issue bonds…](https://sms4smile.com/quotes/george-soros/by-creating-the-european-central-bank-the-member-states-exposed-their/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [We are privileged that the dollar is the "currency of last resort" and the most important currency in the world. Global commodities are priced…](https://sms4smile.com/quotes/kabir-sehgal/we-are-privileged-that-the-dollar-is-the-currency-of-last-resort-and/) [Kabir Sehgal](https://sms4smile.com/quotes/author/kabir-sehgal/) > [Debt, we've learned, is the match that lights the fire of every crisis. Every crisis has its own set of villains - pick your…](https://sms4smile.com/quotes/andrew-ross-sorkin/debt-we-ve-learned-is-the-match-that-lights-the-fire-of-every-crisis/) [Andrew Ross Sorkin](https://sms4smile.com/quotes/author/andrew-ross-sorkin/) > [It is clear to me that the financial sector, including CNBC, loves central banks](https://sms4smile.com/quotes/marc-faber/it-is-clear-to-me-that-the-financial-sector-including-cnbc-loves/) [Marc Faber](https://sms4smile.com/quotes/author/marc-faber/) [Browse all 254 Central bank quotes ](https://sms4smile.com/quotes/about/central-bank/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "The world changes! So we're in a situation today where the only policymakers that have flexibility are central banks. But they don't have the instruments! So they've had to experiment, and the more you experiment, the more uncertainty and the higher the risk of collateral damage.", "creator": { "@type": "Person", "name": "Mohamed El-Erian" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/mohamed-el-erian/the-world-changes-so-we-re-in-a-situation-today-where-the-only/", "about": { "@type": "Thing", "name": "Central bank" }, "@id": "https://sms4smile.com/quotes/mohamed-el-erian/the-world-changes-so-we-re-in-a-situation-today-where-the-only/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/f80/mohamed-el-erian-19946_central-bank_the-world-changes-so-we-re-in-a-situatio_2605699.jpg", "contentUrl": "https://sms4smile.com/quotes/i/f80/mohamed-el-erian-19946_central-bank_the-world-changes-so-we-re-in-a-situatio_2605699.jpg", "url": "https://sms4smile.com/quotes/i/f80/mohamed-el-erian-19946_central-bank_the-world-changes-so-we-re-in-a-situatio_2605699.jpg", "width": 1080, "height": 1080, "caption": "“The world changes! So we're in a situation today where the only policymakers that have flexibility are…” — Mohamed El-Erian", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Mohamed El-Erian", "item": "https://sms4smile.com/quotes/author/mohamed-el-erian/" }, { "@type": "ListItem", "position": 4, "name": "The world changes! So we're in...", "item": "https://sms4smile.com/quotes/mohamed-el-erian/the-world-changes-so-we-re-in-a-situation-today-where-the-only/" } ], "@id": "https://sms4smile.com/quotes/mohamed-el-erian/the-world-changes-so-we-re-in-a-situation-today-where-the-only/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```