Much has been said about how developed governments have been deficit spending as if they’re at war since 2007-2009. And you might expect the story to be similar on the monetary side. After all, the central bank balance sheet expansions that we’ve seen over the past few years look unprecedented. The reality may surprise you. We’ve charted the change in notes in circulation over WWI below and included a chart of central balance sheet expansions over the past 5 years. As you’ll see, it’s clear that wartime monetary easing was way in excess of what we’re seeing today. The central banks that have expanded their balance sheets the most recently are at worst comparable to neutral countries in WWI. See for yourself below. It could be much worse…

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