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Why Central Banks Will Choose Recession Over Inflation
Why Central Banks Will Choose Recession Over Inflation
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While many market participants are concerned about rate increases, they appear to be ignoring the largest risk: the potential for a massive liquidity drain in 2023. Even though December is here, central banks’ balance sheets have hardly, if at all, decreased. Rather than real sales, a weaker currency and the price of the accumulated bonds account for the majority of the fall in the balance sheets of the major central banks. In the context of governments deficits that are hardly declining and, in some cases, increasing, investors must take into account the danger of a significant reduction in the balance...
Source: https://www.newswars.com/why-central-banks-will-choose-recession-over-inflation/
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