Is PIMCO's Bill Gross a Market Monetarist?

Is PIMCO's Bill Gross a Market Monetarist?
This is PIMCO's Bill Gross: “The transition from a levering, asset-inflating secular economy to a post bubble delevering era may be as difficult for one to imagine as our departure into the hereafter. A multitude of liability structures dependent on a certain level of nominal GDP growth require just that – nominal GDP growth with a little bit of inflation, a little bit of growth which in combination justify embedded costs of debt or liability structures that minimize the haircutting of or defaulting on prior debt commitments. Global central bank monetary policy – whether explicitly communicated or not – is now geared to keeping nominal GDP close to historical levels as is fiscal deficit spending that substitutes for a delevering private sector.” HT Cthorm


WORLD LEADING ADVISORY SPECIALISING IN THIS TOPIC

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