Economics Weekly by Lloyds TSB

Real economy still not seeing money flow freely

Real economy still not seeing money flow freely

Despite unprecedented injections of liquidity, monetary growth is still slowing

Since the global financial crisis erupted, central banks around the world have pumped billions into stabilising financial markets. To a large extent this has worked, in terms of currency volatility, money market interest rate spreads, equity and bond markets, there has been a marked improvement. Indeed, the evidence is that investment banks have been restored to health, if burgeoning profits in Q1 and Q2 for those involved in financial market instrument and activity (i.e., advising commercial companies on issuing debt and equity finance, betting on spreads and yields etc) are anything to go by.

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