https://www.linkedin.com/pulse/commodities-wind-change-william-yii?published=u
Fundamentally speaking, since QE1 to QE3 have never increased the
velocity of money but plunged the velocity instead, a gradual rate hike
should be positive as this should encourage banks to loan more due to
normalization of margins and thereby addressing the money velocity
issue.
And, with more money supply coupled with a well corrected commodities
sector, this seems to be the recipe for inflation/reflection induced
reversal? In other words, QE was deflationary at best!
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