by Bill O’Grady

Two weeks ago, we described the process of “monetary funded fiscal spending” (MFFS), including a discussion of why it might be implemented, how it would work and the potential problems that could come with using it.  Last week, we examined two historical examples where forms of MFFS were implemented, Japan in the 1930s and the U.S. during WWII.  In the final segment of this series, we will make some observations based on the two historical examples discussed last week.  We will then discuss the likelihood of MFFS being deployed in today’s world, focusing on which nation is most inclined to use it.  As always, we will conclude with market ramifications.

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