Economists at Natixis analyze the consequences of the massive monetary expansion in response to the coronavirus crisis in OECD countries. Key quotes “It will not increase inflation, due to the disappearance of the link between the money supply and prices.” “It will not make exchange rates move much, because all countries are conducting the same expansionary monetary policy.” “It will have little effect initially: if demand for money increases as much as the money supply in the short-term, this increase in the money supply will have no effect on the prices of other assets because the crisis will lead savers to hold monetary assets.” “In the medium-term, it will lead to lower long-term interest rates and higher share prices and real estate prices.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next WTI drops toward $24 after EIA reports largest-ever weekly increase in US oil stocks FX Street 2 years Economists at Natixis analyze the consequences of the massive monetary expansion in response to the coronavirus crisis in OECD countries. Key quotes “It will not increase inflation, due to the disappearance of the link between the money supply and prices.” “It will not make exchange rates move much, because all countries are conducting the same expansionary monetary policy.” “It will have little effect initially: if demand for money increases as much as the money supply in the short-term, this increase in the money supply will have no effect on the prices of other assets because the crisis will lead savers… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
