As anticipated here, Central Banks will tighten. They will try to do it in a gentle way, yes. But they will tighten. The best definition of ‘‘gentle tightening’’ I can find comes from a speech former ECB president Mario Draghi gave in summer 2017. If you remember, in 2017 the global economy staged a strong and concerted cyclical recovery - mostly due to the lagged effect of a huge 2016 Chinese credit expansion and some fiscal stimulus in the US. ‘‘As the economy continues to recover, a constant policy stance will become more accommodative, and the central bank can accompany the recovery by adjusting the parameters of ... (full story)