Daniela Gabor: Andy Haldane links fiscal policy and productivity shift since 2017 speech

Daniela Gabor: Andy Haldane links fiscal policy and productivity shift since 2017 speech
Haldane rethinks fiscal and productivity link

Daniela Gabor notes that Andy Haldane's 2017 speech on Productivity Puzzles did not reference fiscal or public debt.

She observes that Haldane now suggests a causal connection between fiscal matters and productivity, advocating for limiting state spending unless it encourages private capital involvement.

Gabor has previously highlighted that the Fed has been purchasing $40 billion in U.S. Treasuries monthly since December, with these actions attracting less public attention than smaller interventions in the market. She has also noted that repo lines offer last resort dollar liquidity to U.S. allies lacking direct swap line access. Her earlier observations focus on mechanisms of public sector support in financial markets.

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