Tuesday, May 11, 2021
Monetary Pumping and Idle Resources https://youtu.be/r4z3c9jPu18
Monetary Pumping and Idle Resources https://youtu.be/r4z3c9jPu18
As a result of the recent stimulus policies employed by the US government and the Fed, most commentators are of the view that the risk of a deepening slump in the US economy on account of the covid-19 pandemic has now receded.
Some other commentators are not so certain that the risk has declined, arguing that the economy is still heading towards difficult times ahead. These commentators are of the view that to prevent the possible economic difficulties ahead authorities should continue with easy fiscal and monetary policies until the economy safely placed on the trajectory of stable economic growth.
Most commentators are of the view that by failing to act swiftly, authorities are running the risk of raising the cost of an economic slump in terms of idle or unutilized resources such as labor and capital.
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