Global | Inflation risks and the global monetary boom

Market nervousness about inflation has increased in recent weeks, in part due to strong monetary growth in the major economies. While we still think that the monetary boom is not a cause for anxiety, upside risks related to inflation have risen in recent months.

What you will learn :

  • Money growth has eased in the major economies in recent months but remains strong, mainly due to central bank asset purchases.
  • Purchases are likely to fall in 2021 but will remain substantial. As a result, broad money growth in the major economies could remain at a double-digit pace for a second year.
  • Last year, we argued that private credit might shrink, offsetting the boost from central bank liquidity injections. 

Topics: Global, Inflation, Inflation risks, Monetary growth

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