EP Monthly - Nov 2021

Reading how the official line of speech has changed since last April, it appears that some central bankers are bewildered by the recently released inflation data even though the raison d’être of the vast monetary stimuli put in place by central bank authorities since 2009 was to ultimately avoid deflation and to reignite private demand. This plan of action was taken one step forward in March 2020 when the pandemic broke out, and it was not just through the central banks’ pandemic purchase programs but also the governments’ emergency grants to both citizens and corporations that broad money skyrocketed to levels never seen before. In this time period (March 2020 - today), the total balance sheet of both the Fed and the ECB in relation to the GDP rose from 17% to 38% and from 39% to 70%....

GMV November 2021

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