Central bank money printing since GFC
How much money have central banks printed since the Global Financial Crisis (GFC)? The reason it is important to understand this, is because central bank money printing (monetary inflation in Austrian Economics terms) has caused massive asset price inflation since the GFC. Austrian Economics argues this is cause and effect. Note: Changes in the size of central bank balance sheets = the amount of money they have printed.
So if central bank money printing has caused "asset prices" to rise, it should be expected that when banks start "normalising monetary policy" by starting to withdraw all that printed money from the system, "asset prices" would fall.
So farover the last week, the US Fed has announced that it will soon start reducing its balance sheet. It is expected that shortly after the ECB will also follow suit .... and that then just leave Bank of Japan still expanding its balance sheet..... so watch this space, as a guide to some major asset prices.
