Liquidity and Debt in 2023

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Global Liquidity and World Debt in 2023 – Hang on Tight, The Rollercoaster Returns

 

The expansions of debt and liquidity are closely linked. Liquidity drives markets, and liquidity is driven by the stock of debt, particularly when it is rising strongly and needs re-financing. Debt is likely to top US$315 trillion in 2023, excluding financials. More debt demands more liquidity, but the course of this relationship is never smooth. Differential movements can trigger financial crises. We expect Global Liquidity to rebound slightly to exceed US$174 trillion in 2023 as a stealth QE re-starts, pressured higher by ‘financial dominance’.

 

 

 

 

See our latest published research, Global View: Global Liquidity and World Debt in 2023 – Hang on Tight, The Rollercoaster Returns – January 2023

 

 

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