According to the IMF’s latest estimate from January this year, global inflation will remain above the pre-pandemic level (the level from 2017–2019) of around 3.5% not only this, but next year as well. Therefore, leading central banks – the Fed and the ECB, continue with monetary policy restrictiveness, making global financial conditions tighter.
Was it not only 48 months ago that the sale of Bear Stearns was finalized (on May 30, 2008) to stem the tide of market collapse? Yet when Lehman Brothers announced nine days later that it incurred a USD2.8 billion loss for its second quarter results, the chain of ensuing global difficulties could not have been rationally foreseen by any model or analysis.