GFC to the Corona Virus: An Overview of Economic Stimulus
I've stuck with looking at M1 as a general proxy for economic stimulus more broadly for the sake of simplicity as this an overview.
The primary implicit question here is whether or not more economic stimulus will be effective or not and to what extent under the present circumstances.
The need for liquidity in the markets has certainly been evident recently, as is a response to the corona virus and its economic impact.
Those things notwithstanding however, my own conclusions have been that with the dual deflationary effects of an aging population in the developed world, and the role of technology in reducing costs, has much to do with the failure of central banks to reach or sustain target rates of CPI or wage growth in most places globally.
I believe the US has been relatively successful (more so than most) due in no small measure to the disproportionate success of its global tech giants (part of the aforementioned cost ructions trend).
If we assume more economic stimulus will work to a degree, there is evidence of diminishing returns, are we getting close to a depression-type scenario or some other breaking point (like currency devaluation or inequality leading to political turmoil for example), or can it all be managed somehow by central banks and governments?
The primary implicit question here is whether or not more economic stimulus will be effective or not and to what extent under the present circumstances.
The need for liquidity in the markets has certainly been evident recently, as is a response to the corona virus and its economic impact.
Those things notwithstanding however, my own conclusions have been that with the dual deflationary effects of an aging population in the developed world, and the role of technology in reducing costs, has much to do with the failure of central banks to reach or sustain target rates of CPI or wage growth in most places globally.
I believe the US has been relatively successful (more so than most) due in no small measure to the disproportionate success of its global tech giants (part of the aforementioned cost ructions trend).
If we assume more economic stimulus will work to a degree, there is evidence of diminishing returns, are we getting close to a depression-type scenario or some other breaking point (like currency devaluation or inequality leading to political turmoil for example), or can it all be managed somehow by central banks and governments?
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