Wednesday, January 27, 2021

Translation: Save the market or California goes belly up


WILLEM H. BUITER 

Extraordinary times call for extraordinary measures, which in the context of the COVID-19 pandemic means additional fiscal stimulus of the kind promised by US President Joe Biden. To alleviate sustainability fears, the Federal Reserve must prepare to expand its balance sheet and monetize the deficit.

Problem is, we have never had a case of a failed Hispanic state recovering.  And California has been an increasing drag on the economy for 30 years.

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