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Geopolitical Shocks Seem To Come As Central Banks Tighten
The turmoil echoing across global markets makes it the second time in just four years that central bank tightening efforts have been accompanied by a wave of instability generated by geopolitical uncertainties. That dynamic also enhances the damage to markets by making it tougher for investors to feel assured that monetary policy can step in to smooth financial conditions. chart While this year’s storms have been more tightly focused, and seemingly more intense, there are some echoes from 2018 -- when European concerns about Russia and Xi Jinping’s authoritarian turns were making waves. So were Donald Trump’s ... (full story)