THE END OF THE GRAND EXPERIMENT

CIO MONTHLY | JUNE 2017

In the aftermath of the Global Financial Crisis, several major banks were prompted to undertake ‘extraordinary’ monetary policy measures to promote growth and inflation. The effect of such an untested policy was highly uncertain—and the risk of failure enormous.


While global growth hasn’t been stellar in recent years, it has improved to the extent that some of this extraordinary monetary support looks likely to be withdrawn. How markets react when this ‘sugar hit’ is removed is set to be one of the major questions for investors over the next 12 to 24 months.

In this article, we consider how the unwinding of these stimulatory measures may work and the potential impact on markets.