Natixis writes about the repercussions of unprecedented global liquidity for City A.M.

Could the abnormal amount of liquidity in the global financial market – due to excessive monetary policies – result in a global “bubble” economy? Patrick Artus, chief economist at Natixis, explores this notion in City A.M, arguing that if the rise in global liquidity continues and leads to neither credit growth nor a return of inflation, all signs point to a lasting rise in asset prices. In fact, we should continue to expect a high valuation of equities and price-to-earning ratios, booming property prices and abnormally low real interest rates.

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