'Recessions lie ahead': Global liquidity slowing at fastest rate since 2008

Fell by $4trn since January 2018

Global liquidity is slowing at its fastest rate since the Global Financial Crisis, according to global research group CrossBorder Capital, as central banks engage in a "twin-tightening" of simultaneously hiking rates and shrinking their balance sheets.

According to CrossBorder Capital, global liquidity has fallen $4trn to $124.1trn since January 2018, with around 80% of central banks running tighter monetary policies. The firm also warned central banks have "seriously compromised" economies by over-tightening monetary policy, with its Global Liquidity Index (GLI) falling to a score of 16.0 (between 0-100). The US has led the way with the Federal Reserve beginning the quantitative tightening process in October 2017, while the European Central Bank stopped its €2.6trn bond-buying programme at the end of last year. The tight monetar...