CHAPTER 9

Twenty-Five Central Banks Easing, Lessons and Examples

“Like a full force gale, I was lifted up again”

—Van Morrison

What is a monetary tsunami?

The massive monetary stimulus created in the past decade is unprecedented.

The United States created more money between 2008 and 2016 than in its entire previous history,1 and China multiplied its money supply by four. Broad money as a percentage of GDP globally exploded 20 percent in this period.2

Many monetarists believe that all of this is nonsense because a large part of this money is “sequestered” as excess reserves in the financial system. It does not matter, because those reserves fuel the liquid financial asset bubble and the imbalances of banks.

I call the consequences a monetary tsunami ...

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