The world is awash with money. That is the theme of our first special report for 2018, and it holds true with some caveats. Money and credit have been readily available to those investing in favoured sectors, such as financial assets and real estate. But not so the real economy, with businesses finding it difficult to justify new productivity-enhancing investments in an uncertain monetary and regulatory climate.
Central banks and financial regulators, aware of the disconnect between asset prices and the real economy, have been extremely hesitant in unwinding the very experiments that in no small part led to the disconnect in the first place. Doing so risks once again bringing financial markets to their knees, freezing liquidity and ending the recent expansion before it ever really gets going.
The report includes contains 1,629 words and 8 figures. It is available for download instantly in PDF format (607.613KiB) upon receipt of payment.