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The Restoration
The focus in the week ahead is squarely on the United States. The ECB, the BOJ, the Bank of Canada, and Norway's Norges Bank met last week. No fresh initiatives were taken, but if there is a takeaway, it is that the vaccine appears to have made policymakers, like many of us, more confident about the medium-term outlook, even though more pain and grief are likely first. Investors see continued open-spigot monetary policy and more fiscal stimulus (e.g., US, EU Recovery Fund). Coupled with the vaccine's rollout, it will generate a critical mass of more robust economic growth as the year progresses. The reflation trade ... (full story)
