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Q3 2019 Outlook:
The global fiscal panic
Q3 2019 Outlook:
The global fiscal panic
With economic growth faltering and global supply lines under threat, Modern Monetary Theory is gaining support. But can ambitious fiscal expansion prove a remedy, or is it merely a short-sighted stimulant?
The looming economic slowdown and ongoing trade war has seen central banks panic cutting interest rates and signal new extremes of easing.
Politicians are also warming to the idea of Modern Monetary Theory, which can provide an intellectual backdrop to the fiscal expansion they will initiate as global growth falters further.
Our model indicates that the low point in the economic cycles lies in the third quarter for China, and in the first to second quarter for the US, UK and Europe. A massive repeat of the 1970s global supply shock is also a distinct possibility.
Can expansionist fiscal policy breathe life back into an ailing economy? Download our Quarterly Outlook now to get the SaxoStrats' expert insights.
Q3 Outlook: Global equities show the biggest disconnect since 2007
Peter Garnry
Head of Equity Strategy