Will Inflation Cause A Stock Market Crash In 2022?

  • by:
  • Source: Forbes
  • 01/10/2022
This could well be the year that inflation starts to smack the stock market. The current episode of What’s Ahead explains why. 

Investors need to understand that there are two kinds of inflation: monetary and nonmonetary. 

Last year most of the increases in prices came from pandemic disruptions, made worse by Biden Administration blunders. This is nonmonetary inflation. 

The other type of inflation comes from the Federal Reserve printing too much money. Our central bank has been using a certain gimmick—reverse repurchase agreements—on an unprecedented scale to keep this mountain of money from cascading into the economy. But these kinds of ploys always end badly.
Stock and Crypto Market Values by Maxim Hopman is licensed under Unsplash unsplash.com