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Jacques-Olivier Martin: “Finance on tiptoe”

2022-06-19T15:41:15.422Z


COLUMN - Should we raise rates at the risk of breaking growth which is already slowing down, or do nothing and let inflation run amok? The dilemma is terrible, there is no longer any obvious or necessarily effective strategy.


Health and economic crisis in the time of Covid, looming food crisis... What if the next surge was also financial?

On this front, feverishness is everywhere.

The world stock markets are dropping significantly, nearly 20% drop in six months in New York, Paris or London.

Cryptocurrencies, bitcoin in the lead, plunge much harder.

The strong and brutal rebound in interest rates last week prompted the ECB to meet urgently to rescue the weak links in the euro zone, notably Italy.

Global finance is feverish and concern is gaining economic and political players.

Nothing good.

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How to explain such already perceptible and not always understandable tremors?

They are largely the consequence of the policies of massive liquidity injections carried out in recent years.

This easy money policy pushed public and private spending, and favored the creation of bubbles.

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Inflation is racing: has the ECB waited too long to act?

For years, businesses...

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Source: lefigaro

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