Donnie1/5 Been thinking about how falling interest rates over the last 30 years were tied to our growing economic base. We've seen massive labor force additions from across the world, especially from places like India and China, alongside big leaps in productivity. 💹 #EconomicGrowth #MonetaryPolicy
2/5 As our global economy expanded, so did the money supply. Central banks kept policies loose, but interestingly, we didn't see crazy inflation rates. Why? Well, the sheer scale of economic activities and faster money cycles played a big role. Every dollar added matched a new entrant to the labour market💰#Inflation #CentralBanking
3/5 Here's a twist though – with populations in key economies now aging and shrinking, the whole dynamic's changing. We're looking at a labor shortage and a smaller consumer base. Basically, our economic base along with global population would be hitting their peaks in this decade and then trend downward. 📉 #Demographics #LaborMarket
4/5 Think about it: every extra dollar in a system flushed with cash could now mean real inflation. We've been used to adding money to match our growing economy, but what happens when that growth slows or reverses? 🤔 #EconomicTheory #InflationConcerns
5/5 Bottom line: To maintain price stability, central banks might need to start pulling money out of the economy. And unless we hit a major crisis causing unemployment to spike, don't expect to see those zero interest rates again anytime soon. 🏦 #InterestRates #EconomicOutlook