【Zen Quotes Analysis📖| "Moderately Loose" Monetary Policy 💰】
The market is quite strong, continuing to oscillate around the center. Today, let's talk about the "moderately loose" policy mentioned at the conference a couple of days ago.
The term "moderately loose" is extremely rare in the field of monetary policy, with the last usage during the 2008 financial crisis.
The Dow Jones fell by 33.8% in 2008, marking the largest drop since 1931, while the S&P 500 dropped by 38.5%, the worst annual performance since 1937.
In 2009, the global GDP fell to -0.6%, the first negative growth globally since World War II. To respond to this crisis, governments around the world injected a total of 11.5 trillion USD to stabilize financial markets and stimulate the economy, while the Eastern Dragon also launched a 4 trillion (equivalent to 14% of China's GDP in 2007) economic stimulus plan.
Since then, for over a decade, regardless of the situation, the "moderately loose" monetary policy has not been restarted. This gives us insight into the higher-ups' projections for the future economy.
A "moderately loose" monetary policy will inevitably lead to capital outflows, so we need to find the direction of the flow. Policies favoring the stock market, especially the technology innovation sector, and of course, our beloved #cryptocurrency.
