Fiscal Stimulus and Monetary Stimulus Explained
Birch Run Website: www.birchrunfinancial.com
Birch Run Financial email: info@birchrunfinancial.com
Birch Run Financial Phone Number: (484) 395-2190
Fiscal Stimulus and Monetary Stimulus, Explained
Since the beginning of the pandemic, we've been hearing about fiscal stimulus and financial stimulus. Today, Alex Cabot and Ed Lambert of Birch Run Financial break them both down.
Fiscal Stimulus:
- When the government increases spending, cuts taxes, or both.
- Can be measured by "Fiscal Multiplier," or "bang for your buck."
- We've implemented 5 specific cats of fiscal stimulus since the beginning of 2020.
- Returning to normal could be trick and could involve higher taxes on some Americans and businesses.
Monetary Stimulus:
Created through the Federal Reserve's management of interest rates and the money supply
Quantitative Easing
Low interest rates have resulted in TINA - "There Is No Alternative"
Wealth Effect
This was implemented quickly, but must be stopped slowly.
You can always email Alex and Ed at info@birchrunfinancial.com or give them a call at 484-395-2190.
Or visit them on the web at https://www.birchrunfinancial.com/
Alex and Ed's Book: Mastering The Money Mind: https://www.amazon.com/Mastering-Money-Mind-Thinking-Personal/dp/1544530536
Any opinions are those of Ed Lambert and Alex Cabot and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The examples throughout this material are for illustrative purposes only. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Diversification and asset allocation do not ensure a profit or protect against a loss. Past performance is not indicative of future returns. CDs are insured by the FDIC and offer a fixed rate of return, whereas the return and principal value of investment securities fluctuate with changes in market conditions. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Birch Run Financial is not a registered broker/dealer and is independent of Raymond James Financial Services. Birch Run Financial is located at 595 E Swedesford Rd, Ste 360, Wayne PA 19087 and can be reached at 484-395-2190.
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