In cases of sharply falling market valuations, these adverse credit-channel effects may even be exacerbated by the deteriorating health of banks and other financial institutions. In sum, asset prices influence the economy in complex and subtle ways over potentially extended periods of time.
The global economy appears to be experiencing stagflationary conditions – with high inflation and low growth. These conditions create  4/5  BIS - Central bankers' speeches  some tension between anti-inflation policies and pro-growth policies. That notwithstanding, global central banks have communicated their resolve to bring inflation back to target, as low and stable inflation is a prerequisite for high and sustainable growth.