JPMorgan Sees ‘Currency Debasement’ Payback Risk From Stimulus

The unprecedented monetary and fiscal measures unleashed around the world may lead to weaker long-term growth and currency debasement, supporting gold prices, according to JPMorgan Chase & Co.

The risk of currency debasement may heighten next year, John Normand and Federico Manicardi wrote in the report, and will show in the value of Japanese yen or gold rather than the dollar. The risk of a surge in inflation will remain trivial in 2020 and stay subdued over the next two years, they said.