Stimulus Package And Dollar Value
Someone please weigh in any of what i said was wrong.
Stimulus package and dollar value. So is food as both provide better value. Theoretically 1 9 trillion of stimulus added to the us economy should mean a lower us dollar. Given the rate at which unemployment claims are surging it s unlikely that this will happen in the near future but still likely.
The dollar weakened against a basket of currencies on wednesday as a 2 trillion stimulus bill helped boost risk appetite and reduced demand for the safe haven currency. Monetary measures included from international monetary fund do not include dollar values because of challenges in measuring currency value. If there are food shortages and an economic stimulus package you will see significant inflation when more people value 2 000 calories a day more than value the extra money.
With this current stimulus package being a whopping 2 trillion it s likely that it ll mean that to pay it back over time we ll see an increase in taxes for the general public. Early forecasts of the size of the stimulus package was for 1 5 trillion. Size of stimulus package 1 of 2019 gdp not exhaustive 1 total number made public collected and analyzed until may 26 2020.
Money is a store of value backed by faith regardless if it is paper or metal. More aid for the unemployed the hungry and those facing eviction. Additional support for small businesses states and local governments.
Breaking down the 900b stimulus package and 1 4t omnibus bill by caitlin emma and marianne levine 12 21 2020 9 injured after ny passenger bus drives off overpass in the bronx. Non asset backed currency is not a threat as the author implies. When the first package was passed the world was in the early stages of understanding the virus.
Lead is worth more than gold. None the less a stimulus flooding dollars into the market would weaken the dollar and help adjust our trade imbalance. However don t expect biden s stimulus package to have the same effect on the us dollar as the previous stimulus package.