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Financial Times/Robin Harding, Brendan Greeley, and Martin Arnold/3-6-2020
“As well as its consequences for public health, therefore, coronavirus may mark a watershed for economic policy. After almost half a century when central bankers were the heroes, and monetary policy was the main tool for managing demand, they are actively calling for the use of fiscal policy instead.”
USAGOLD note: Coronavirus or not, the central banks threw up their hands a long time ago and started putting pressure on governments to use fiscal policy as a means to juicing up the economy. The problem is that it takes a long time for governments to act – if they act at all. In the meanwhile, the economy continues to grind lower and financial markets continue to face growing threats to their stability. This Financial Times article ends on a less than hopeful note.