by Bill O’Grady
Two weeks ago, we described the process of “monetary funded fiscal spending” (MFFS), including a discussion of why it might be implemented, how it would work and the potential problems that could come with using it. Last week, we examined two historical examples where forms of MFFS were implemented, Japan in the 1930s and the U.S. during WWII. In the final segment of this series, we will make some observations based on the two historical examples discussed last week. We will then discuss the likelihood of MFFS being deployed in today’s world, focusing on which nation is most inclined to use it. As always, we will conclude with market ramifications.
View the full report
These reports were prepared by Confluence Investment Management LLC and reflect the current opinion of the authors. Opinions expressed are current as of the date shown and are based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change. This is not a solicitation or an offer to buy or sell any security. Past performance is no guarantee of future results. Information provided in this report is for educational and illustrative purposes only and should not be construed as individualized investment advice or a recommendation. Investments or strategies discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances.