Monetary stimulus broke records this year as the Federal Reserve launched infinite quantitative easing, but in a low interest rate environment, monetary policy is less important than fiscal policy in determining asset prices, said Lyn Alden, founder of Lyn Alden Investment Strategy.
The last time the federal deficit as a percentage of gross domestic product was this high was in World War 2 in the 1940s, a rapid increase in inflation followed, albeit not immediately.
Where do you think inflation is headed in the next 12-18 months, and what assets would you invest in now? Comment below.
0:27 – Monetary policy vs fiscal policy on inflation
5:26 – Outlook on inflation
7:20 – Investment assets that will perform well
8:18 – Money velocity and inflation
10:35 – Can fiscal policy pull us out of a recession?
12:18 – Trump vs Biden: infrastructure spending
13:27 – Federal deficit and inflation
16:13 – Liquidity trap?
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