Dalio: Interest Rates and Theory Mmt

dalio: Obviously, normal fiscal policy is usually the way we handle those sorts of investments, according to Market Watch. But the problem with relying on fiscal policies in a downturn besides them being highly politically charged is that it is slow to respond it has long lead times, you have to make programs, concerns over deficits can make it more challenging politically to pass fiscal stimulus, etc., Dalio said. In a Wednesday blog post on Linked In, Dalio, founder of Bridgewater Associates LP, the world's biggest hedge fund, said the ineffectiveness of current monetary policy alone, including cutting interest rates or offering cheap financing to a select few, will make some version of strategies like so-called Modern Monetary Theory MMT or what he refers to as Monetary Policy 3 MP3 more tenable options in the future. It is inevitable that this shift will happen because it is inevitable that central bankers will want to ease when interest rates are pinned at 0% and when quantitative easing will be ineffective in achieving the goal, he wrote. Billionaire Dalio makes the case that traditional policies have widened the gap between the poor and the wealthy rather than helping to stimulate growth across socioeconomic classes, among other aforementioned foibles. Proponents of MMT argue that a government that borrows in its own currency doesn't need to worry about running up a deficit as long as inflation isn't running out of control because it controls the money-printing press. (news.financializer.com). As reported in the news.