Monetary ease, Grantham on overvaluation and the bubble in bubbles

Today's Commentary
The macro debate today is about secular stagnation and the correct policy response to deal with it if it exists. With that backdrop, it is interesting to read Jeremy Grantham’s latest quarterly letter to investors, which sounds a word of caution about monetary ease-fuelled asset prices. Is there a bubble? Comments below
The last two daily commentaries here were about the limits of monetary policy. See parts 1 and 2 here. These tie in very well to today’s topic because the conclusion I drew on the limits of monetary policy was that the global economy has relied excessively on monetary policy to fine-tune economic performance as policy makers became enthralled with an asset-based world view. The result has been increased private debt in developed economies in particular,...


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