ECONOMIST CORNER
PAN TRADE SCHOOL
SMART INVESTOR SOCIETY
MR IBO RICHARDS
MONETARY POLICY v FISCAL POLICY
SAFE INDEX-------- Unch
THE HOME PRO----+.05%
CORNER OIL INTERNATIONAL----+9%
Good day
Regulators and policyholders have the task at hand of pushing a US Economy that is thriving in the midst of a recovery. Many argue that more fiscal stimulus is needed to reduce downside risk. And the question is posed should the bond markets be where they are at with monetary policy moving forward. As investors play the markets higher, experiencing stronger yields in bonds, and witnessing a higher dollar the conversation shifts to finacial conditions and less fear as tightening resumes in finance in the US economy.
Fiscal policy is anticipating expansion and growth and the new adminstration in the mid term translates to less monetary policy.
The question then is how much and when does stimulus go to work for the US EConomy. Assuming of course the substantial stimulus fiscal stimulus increases the infrastructure capacicity of the economy. Higher wages needed depends in inflation and again the stimulus. Objective for inflation in the range of two percent has the econkmy realizing that inflation is to low which is causing more pressure on labor as the economy grows.
Now it must be understood in this economic equation that growth, unemployment, and interest rates reduce downside risk. And amending finacial reform, raising capital to banks and money markets fund reform to excite lending is a plus for the evicting economy,
Talk of Voljer Rule reducing aggressive firms cause premature speculation and is negative for economic growth and drive the productivity risk. Strong dollar the same.
Fiscal policy is aggressive. Example wuabative easjng. Monetary policy in placing stabilizers in the event of a catastrophe requires fiscal support.
Argue -- Timid is the Fed and assuming is the investor.
Homework ---- wage compensation inflation and much volatility in the tight labor markets.
Thank you and have a great day.
IZCORPEXCHANGEIZCORPEXCHANGEIZCORPEXCHSNGEIZCORPEXCHSNGEIZCORPEXch
