Yesterday’s fall in the ASX200 to an eight-month low suggests that equity markets are bracing themselves for the inevitable, and overdue, correction of over-inflated assets – from equities, to housing to cryptocurrencies to even more exotic variants such as non-fungible tokens – that have been pumped up by excess central bank printing of dirt cheap money.
The question to be answered now is how much this unnaturally cheap money has distorted capital flows and how unruly is the correction.
Loading...
The Australian Financial Review’s succinct take on the principles at stake in major domestic and global stories – and what policy makers should do about them.
