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GM16: Central Banking in a De-Globalized World ft. Joseph Wang

Top Traders Unplugged

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Will Increasing Liquidity Reduce Inflation?

When you lower rates, you do seem to basically as you describe, but have a supply side policy. Corporations can go tap the bond markets at rates that are barely above treasuries. And what do they do with the money? Thoughit doesn't trickle down in terms of more hiring,. Or more investment in factories or so forth. Whatt what it ends up doing is just going to more stock bybacks, or maybe more executive pay and things like that. It does seem to be pushing capital into into industries that really don't need capital any more. So there probably is some marginal flow through to to the rest of the economy, but, you know, it's disproportionate.

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