Economics
‘MMT-Lite’ Is Reshaping Markets and May Get $2 Trillion Lift
- Combination of fiscal, monetary expansion jams pricing signals
- Some say mix is close to MMT, with major market implications
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If there’s one key takeaway for financial markets after a year of pandemic, it’s that officials now seem predisposed to throwing huge amounts of money at protecting their economies.
For some strategists this embrace of ultra-low interest rates and record fiscal spending is becoming a flirtation with Modern Monetary Theory, which says governments can spend heavily when price pressures are low. President Joe Biden’s multi-trillion dollar infrastructure plan is set to be the next big outlay.