…But there is no doubt the first part of the coming decade will see traditional fiscal stimulus return to the table. Investors will also need to consider, whether like monetary policy, we eventually see unconventional fiscal policy emerge after more traditional measures are exhausted through excessive debt build-up.
What is unconventional fiscal policy? For this we prefer the idea of Modern Monetary Theory (MMT), which is slowly and rightfully emerging from the fringe. Through the MMT lens the government itself, not the central bank, controls the economy through fiscal injections (largely infrastructure and employment-based) until spare capacity is exhausted….
Praegu paistab küll, et fiskaalpoliitikaga juhtimine paistab tulevat. Eurotsoon selleks tegelikult valmis pole.