【Zen Words Analysis 📖| "Moderate Easing" Monetary Policy 💰】
The market is quite strong, still continuing to fluctuate around the center. Today, let's talk about the "moderate easing" proposed at the conference a couple of days ago.
The term "moderate easing" is extremely rare in the field of monetary policy. The last time this term was used was during the financial crisis in 2008.
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, global GDP fell to -0.6%, the first negative growth globally since World War II. In response to this crisis, governments around the world injected a total of $11.5 trillion to stabilize financial markets and stimulate the economy, and East Dragon also launched a 4 trillion (equivalent to 14% of China's GDP in 2007) economic stimulus plan.
Since then, for more than a decade, regardless of the circumstances, "moderate easing" monetary policy has not been restarted. So we can understand how the higher-ups view the future economic scenario.
"Moderate easing" monetary policy will inevitably lead to capital outflows, and we need to look for the direction of the water flow, guided by policies that favor the stock market, especially in the technology innovation sector, and of course our favorite #cryptocurrency.