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Bankless

“Nothing Stops This Train” | Lyn Alden on Fiscal Dominance

May 13, 2024
Author and investor Lyn Alden discusses the Era of Fiscal Dominance, winners and losers in this new era, how to prepare for it, and the performance of Crypto. They delve into indicators of Fiscal Dominance, the impact on global economies, and the role of central banks. The discussion also includes the influence of fiscal policies on asset prices and currency values, as well as the importance of understanding macroeconomic conditions in navigating this environment.
01:34:03

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Quick takeaways

  • Fiscal dominance shifts economic control to focus on fiscal tools over traditional monetary policies.
  • Congress and the President wield power in shaping winners and losers through tax adjustments and stimulus programs.

Deep dives

Transition to Fiscal Dominance in the Economy

The shift towards fiscal dominance is reshaping economic dynamics, moving away from traditional monetary control. The escalation of deficits and debt restructuring, coupled with the limited efficacy of conventional monetary tools, is driving this change. As fiscal measures take precedence, the economy's trajectory is increasingly influenced by expansive fiscal policies.

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