Economics
The Death of Fiscal Austerity Has Major Implications for Markets
- Prepare for ‘unadulterated high-powered spending,’ Papic Says
- Clocktower strategist: ‘We’re in a different paradigm’
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The spread of the Covid-19 pandemic last year triggered an about-face among governments around the world regarding fiscal policies. Rather than tightening belts to reduce deficits and debt, nations are engaging in aggressive spending to help prop up economies devastated by efforts to contain the virus.
Marko Papic, partner and strategist at hedge-fund seeder Clocktower Group, joined the “What Goes Up” podcast to discuss what it all means for the current economic cycle and financial markets. Some lightly edited highlights of the conversation are below.