Happy New Year
By Lars Christensen, Markets & Money Advisory Founder and CEO, LC@mamoadvisory.com, @
Today we have published the December edition of Global Monetary Condition Monitor our monthly flagship publication, which covers monetary policy in 26 countries around the world and gives an overview of global monetary matters and market implications of global monetary trends.
With 2017 coming to an end, we look back on the year’s main monetary developments and peer forward into 2018.
In many ways 2017 went much better than expected – also in terms of monetary policy.
Monetary conditions appear to be rather well-calibrated globally, and the world’s major central banks are largely on track to hit their inflation targets in the medium term.
2018 will be a year of ‘continuation’ and ‘normalization’. The US Federal Reserve looks set to keep hiking interest rates, but not as much as some FOMC members seem to think or want. The Fed will probably also continue to shrink its balance sheet. In Europe, a strong performance by the economy could ‘force’ the ECB to turn more hawkish, even if monetary factors give little or no reason to tighten monetary conditions.
All in all, there are grounds to hope that 2018 will prove just as benignly ‘boring’ as 2017.
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