Mar 23, 2020
Welcome to Finance and Fury –
Today want to go through Reserve bank and government responses – Monetary and fiscal side implementation of the sort of policies covered in October last year – 5-6 months ago
Central banking side of things – Monetary policies
That is why more is needed – Fiscal side as well as a flow through of expanded spending and helicopter money
Before this - Governments had no justifiable reason to glow up debt ceilings and expand fiscal spending – especially in a time of asset price growth and reasonably predictable low economic growth rates – it is okay if numbers are low as long as they are expected – had no reason to increase payments to the population
Fiscal side of things –
Increased government intervention – what are the proposals -
Additional measures include:
The total economic assistance package is worth $189 billion, according to the Government, equivalent to 9.7 per cent of Australia's gross domestic product
Central banks alone have a large challenge - this is something way beyond their control – Governments are driving the shut downs