As predicted by this column in recent months, the officially reported inflation rates of the leading economic nations are now rising sharply. At the same time, however, economic growth is also much stronger. Phases of consolidation after the gains of the past year are possible, but in the medium to long term equities looked to be more interesting than the historically low-yielding bonds.

Once again in 2021, the popularity of a pragmatic, expansionary monetary policy that provides ongoing stimulus to the economy in all global regions appears to be enduring. This approach to monetary policy can be described as one way of applying so-called “Modern Monetary Theory (MMT)”. Particularly in the US, but also in Europe, the financial markets have so far responded positively to the ballooning of central bank balance sheets. 2022 and 2023 are likely to be the real test for advocates of MMT. Trust in paper currencies could be put to the test.

We are currently living through an era of change, in which a clearly identifiable shift in social attitudes is evident. It involves a more conscientious lifestyle and a desire for greater transparency and disclosure.