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How Much Is Too Much?

How Much Is Too Much?

Authored by Michael Lebowitz via 720Global.com,

The amount of monetary stimulus increasingly imposed on the financial system creates false signals about the economy’s true growth rate, causing a vast misallocation of capital, impaired productivity and weakened economic activity.

To help quantify the amount of stimulus, please consider the graph below.

Data Courtesy: Federal Reserve

Federal Reserve (Fed) stimulus comes in two forms as shown above.

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