Modern Monetary Inflation
Dec 19, 2022 | Viewpoints
As a thought experiment, one could ponder what would happen if a modern-day tycoon, such as Elon Musk, decided to liquidate all his assets and distribute his fortune equally to everyone. If we limit our fantastical muse to every citizen of the United States, we would each receive $530.12. Yet, in a post-Covid world, this thought experiment has real world implications. Today, global central banks are utilizing monetary policy to counter the second order consequences resulting from government intervention and fiscal policy response to the pandemic. In addition, geopolitical strife continues to add to the confluence of events currently roiling capital markets led by the highly inflationary environment.