BAML: The Case For More fiscal Stimulus

There has been much consternation among those writing institutional market research reports – major hedge funds, independent analysis and even banks -- about the impacts of monetary stimulus. The consensus seeming to be from my unscientific study of reports that I receive and read is that the economic benefits of central bank central planning have trickled up mostly to the top end of society. It is not difficult to document this by looking at how high stock multiples and low-interest rates correlated during the central bank stimulative era. Enter the concept of fiscal stimulus, where government (or central bank) spending is directed towards the regional infrastructure rather than purchasing government and corporate bonds. It is here Bank of...