A key factor in the future: Confidence in money

Money supply increased sharply after the subprime crisis , and has surged after the COVID crisis in OECD countries. Confidence in money then plays a major role. Let us assume that the excess supply of money causes a loss of confidence in money. We would then see: An attempt by savers to reduce their holdings of money, resulting in a sharp rise in the prices of other assets; A rise in the prices of alternative assets to money: gold, cryptocurrencies; A depreciation of the exchange rate in countries where money creation is stronger than in other countries. In the most recent period, there are signs of a loss of confidence in money: Sharp rise in equity valuations, rapid tightening of credit spreads, long-term interest rates remaining low despite fiscal deficits; Rising prices of gold, bitcoin, etc.; Depreciation of the dollar, due to very strong monetary creation in the United States.