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Markets ride easy money wave, experts caution against asset price bubbles

Economists project developed world central banks to keep liquidity tap open well into 2021

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The V-shaped rebound has been underpinned by gush of liquidity flooding the global financial system thanks to the balance sheet expansion, particularly by the central banks of G4

Samie Modak Sundar Sethuraman Mumbai/Thiruvananthapuram

4 min read Last Updated : Jul 23 2020 | 1:11 AM IST

Equity markets across the world are having a dream run, thanks to aggressive stimulus measures by central banks.

Most global indices have managed to overcome deep losses suffered in March, amid the Covid-19 pandemic, to trade in the green on a year-to-date (YTD) basis. On Wednesday, the benchmark Nifty closed at 11,133 — the index is currently just 8.5 per cent down on YTD basis and 10 per cent shy of a new all-time high.

It managed to make giant strides despite the unprecedented economic shock following the lockdown. The Indian benchmarks have rebounded 47 per cent from their March lows, having

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