End of Cheap Money a Recipe for Market Volatility: Cliffe

Mark Cliff discusses his report 'New Abnormal', highlighting ongoing financial system safety efforts post-crisis. The conversation shifts to central bank policies, focusing on the challenges of adapting to reduced monetary support. The discussion emphasizes the abnormal economic conditions and potential volatility, particularly concerning quantitative easing and its exit strategies. The impact of these policies on currency markets, especially the yen and euro, is also explored.

What is the main focus of Mark Cliff's report 'New Abnormal'?

• The potential for future financial shocks

• The benefits of financial deregulation

• The role of technology in finance

• The history of financial crises

What is a major concern regarding the withdrawal of cheap money from the market?

• Market and economic instability

• Decreased foreign investments

• Higher unemployment rates

• Increased inflation rates

Which central bank is mentioned as still 'AB normalizing'?

• Federal Reserve

• Bank of England

• Bank of Japan

• European Central Bank

What is one of the main levers used by the Bank of Japan to boost its economy?

• Reducing government spending

• Increasing interest rates

• Strengthening the yen

• Weakening the yen

How do divergent monetary policies affect the currency market?

• They stabilize exchange rates

• They have no impact on currency values

• They lead to competitive devaluations

• They create uniform currency values