What does the future hold for the monetary system? Macroeconomic imbalances and geopolitics may accelerate change in the current largely USD-based monetary system into a more multipolar one.

The Inflation Reduction Act 2022 (IRA) – containing sweeping tax credits/incentives and grants/loan programs across multiple industries – is the most ambitious and comprehensive legislative action the United States has ever taken on addressing climate change. Funding for innovation and R&D could position the US as a leader in the low-carbon economy in the 2030s and beyond.

In hindsight, 2022 marks the year when geopolitics took center stage, not only significantly impacting the global economy and financial markets, but resetting international relations and global international commerce.
This has implications for short-, medium-, and long-term growth, price prospects, and monetary and fiscal policy, potentially leading to sizeable shifts in the global monetary system with reverberations in financial markets.