Capital Markets: Observations and Insights Autumn 2019

​ The Good, the Bad, and the Ugly

ECONOMY

The Good – Global Easing

• Countries around the world are loosening monetary policy

‒ This stimulus, which began only in the past few months, should make its way into the economy over the next year

Global Monetary Policy Tracker

10

8

Tightening

6

4

2

Global tightening has given way to global easing

0

-2

-4

(Easing) Index

-6

Easing

-8

Net Global Tightening /

-10

Jul-15

Jul-16

Jul-17

Jul-18

Jul-19

Apr-15

Oct-15

Apr-16

Oct-16

Apr-17

Oct-17

Apr-18

Oct-18

Apr-19

Oct-19

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Source: Council on Foreign Relations. Global Monetary Policy Tracker compiles data from 54 countries to highlight significant global trends in monetary policy. The index ranges from -10, which indicates that all countries are easing, to 10, which indicates that all are tightening. Index weighted by share of global foreign exchange reserves .

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