Baku. 11 December. REPORT.AZ/ Virtual crypto-currencies will appear as a factor that accelerates this process during any economic or financial crisis.
Analytical Group of Report News Agency informs, in coming years the fact of decline in global liquidity is already known. The Federal Reserve System (Fed) and the European Central Bank (ECB) have announced their plans to cut their balance by trillions of dollars. At the same time, the continuing growth of discount rates in the world will reduce investments in the real economy.
Crypto-currencies which are part of the financial markets, will cover a significant part of the world's liquidity. Thus, the market capitalization of crypto-currencies currently exceeded $ 300 billion. Increase of this figure up to 1 trillion or 2 trillion dollars is absolutely real. Notably, according to research conducted by Stephen S. Roach, former Chairman of Morgan Stanley Asia and the firm's chief economist, is a senior fellow at Yale University's Jackson Institute of Global Affairs and a senior lecturer at Yale's School of Management there is $ 6.2 trln. additional or excessive liquidity in the world. Referring to the Bank for International Settlements (BIS) Roach in his “Project Syndicate” article stressed that, following the financial crisis of 2008, the aggregate assets of US, eurozone and Japanese central banks increased by $ 8,3 trln. from $ 4.6 trln. to $ 12,9 trln. Nevertheless, nominal GDP in these regions amounted to $ 2.1 trln. As a result, excess liquidity in the amount of $ 6.2 trillion has entered the financial markets.
It was reported that $ 2-3 trillion of this amount will be absorbed by ECB and BoJ (Bank of Japan). The rest will be drawn from financial markets through investment in virtual currency and stock markets. This, in turn, will reduce the liquidity and lead to the crisis, while the crisis, in turn, will accelerate with reduced liquidity.