Central bank liquidity surge is not without historical precedent
Huge central bank liquidity rise is not without historical precedent
Several central banks have opted for the strategy of injecting a large dose of liquidity into the system with two objectives: to support growth and fight dangerously falling inflation. According to the latest computations by independent researcher Ed Yardeni, the balance sheets of the six major central banks stand at $13.9 trillion, yet this flood of liquidity is not unprecedented. Economic history yields various episodes comparable to today that are worth examining.
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