Among the many strange, unforeseen changes of the last year is a new respect for Keynesian economic theory.
Q4 2020 hedge fund letters, conferences and more
Practically everyone in power now agrees that deficit spending produces GDP growth. They differ only on its expected magnitude and duration. The few exceptions are mostly outside the halls of power.
This matters because deficit spending, already higher than ever, is set to grow even more when Congress passes President Biden’s pandemic relief package.
I take it as given they will pass it, since Democrats have the necessary votes and look united on the major items. They may tweak some details, but the final amount will be...
