A few weeks ago, I watched the latest instalment of the Jurassic World franchise, Jurassic World Dominion (JWD). At the end of the second chapter, Jurassic World: Fallen Kingdom, a character named Maisie Lockwood essentially presses a BIG RED BUTTON that releases a whole bunch of dinosaurs into the world. This unchecked global liquidity flooded global markets, giving us a greatly extended bull run but at some point, the chickens had to come home to roost. Of course, the rise of populist politics wasn’t solely due to global monetary policy, but global monetary policy since the global financial crisis played an important role. The animal spirits or, in Jurassic parlance, “dinosaur spirits” of the past decade will be dampened by global monetary tightening.
