A Look at Fiscal Stimulus Measures

The proposed stimulus will total in the neighborhood of 150 billion dollars a month, even before consideration of any follow on measures. That is at least three times the size of the output shortfall. Relative to the size of the gap being addressed, it is six times as large. While there are enormous certainties, there is a chance that macro economic stimulus on a scale closer to world wor two levels than normal recession levels, will set off inflationary pressures we have not seen in a generation.