Extremely loose monetary policy will be required for a long time to support growing debt levels worldwide, buoying liquidity along with global equity and bond prices, according to JPMorgan Chase & Co.
“More debt, more liquidity, more asset reflation,” was the conclusion strategists including Nikolaos Panigirtzoglou, who forecast a $16 trillion increase in worldwide debt this year that would push the combination of private and public sector borrowing to a record high $200 trillion by year-end.
