The combination of aggressive fiscal policy and negative rates may be necessary for the US to see a “v-shaped” recovery, a Federal Reserve Bank of St Louis economist says.
“The economic damage from a severe recession can last indefinitely without powerful, overshooting responses from policy-engineered stimulus,” Yi Wen says in a May 29 research note.
Authorities should consider negative rates alongside government spending on infrastructure, he says.
Fed chair Jerome Powell restated the
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.