With the global pandemic, the economies of various countries are facing severe challenges.
To address this challenge, many countries have adopted policies to stimulate the economy, including quantitative easing, which prints large amounts of money.
However, this policy may also have some negative consequences. Recently, some experts** said that people with large amounts of cash may "have trouble sleeping" this year and next.
So why do these people with large amounts of cash "have trouble sleeping"?What is the reason?
Rising Inflation: Inflation is likely to rise due to monetary excess. When inflation rises, the value of cash falls, which means that the wealth of people holding large amounts of cash may shrink. As a result, these people may feel worried and upset.
Falling interest rates: In an effort to stimulate the economy, many countries have lowered interest rates to historic lows. This means that people with a lot of cash may not be able to make enough gains.
In addition, these people's cash may be eaten away by inflation due to rising inflation, which means they may face a difficult choice between earnings and inflation.
Investment risk: When interest rates fall, many investment markets can become volatile. This means that people with large amounts of cash may need to take greater risks in search of higher returns.
However, such a high-risk investment can also lead to greater losses. As a result, these people may feel uneasy and worried.
The above three points show that people who hold large amounts of cash may face a range of financial problems. These problems are due to the influence of economic policies.
Although monetary easing policies were originally intended to stimulate the economy, these policies may also put some financial pressure on some people. Therefore, this "sleepless" situation is very real.
Summary:
People with large amounts of cash may "have trouble sleeping" this year and next, mainly due to the impact of economic policies.
Rising inflation, falling interest rates, and increased investment risk can all put some financial stress on these people.
Therefore, we need to take a hard look at how we invest our cash and find the best solution to alleviate this uneasiness.
At the same time, we should also pay attention to the balance of economic policies to avoid problems such as excessive inflation or excessive consumption, so as to ensure the stability and sustainable development of the economy.
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