Policy Analysis Through The Lens Of Phase Transitions

Getting back to a steady-state growth equilibrium

Blu Putnam, Chief Economist, CME Group
Originally published in the April | May 2020 issue

The US Federal Government and the Federal Reserve (Fed) moved swiftly to provide massive support to the US economy amid the Covid-19 global pandemic. Governments around the world are helping workers and companies, while central banks bolster financial institutions and fixed-income markets. The US Congress has passed, and the President signed into law, a record-breaking $2 trillion economic support package, while the Fed added almost $2 trillion to its balance sheet in the month of March 2020, ramping it up to $6 trillion (or 30% of GDP) and headed higher. The programs are unprecedented in their scale. They are complex with many different moving parts. They have been put together quickly. Adjustments and new programs undoubtedly will follow.

This article is only available to subscribers.

Having problems?

If you have any questions regarding subscriptions or restricted content, please contact us on +44 (0)207 278 3385 or info@hedgefundjournal.com