Money Printing to Continue Globally, but How Long Can It Last?

This article discusses the European Central Bank’s ongoing corporate bond buying program, which has driven yields into negative territory. Forty-one percent of all IG Bonds now have a negative yield! (https://www.zerohedge.com/markets/record-41-european-ig-bonds-have-negative-yields-ecb-buys-quarter-all-eligible-bonds)

On a related note, the U.S. government appears to have approved an additional $900 billion stimulus package to help shore up the flailing economy. My guess is that nearly all of the package will be funded by Federal Reserve money printing. (https://www.zerohedge.com/political/vote-900bn-stimulus-package-soon-today-after-senators-reach-deal-fed-powers)

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

Leave a Reply

%d bloggers like this: