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Could the U.S. economy be stimulated with enough liquidity?


It’s a strategy that “worked” for China in 2016 with the “Shanghai Accord,” injecting record amounts of liquidity into its economy.

But as Hedgeye Macro analyst Darius Dale explains in the clip above, central banks can only go to that well so many times before it fails to stimulate an economy.

“If [China] is easing policy and pumping liquidity into the system, it’s got to find its way into the real economy somehow,” Dale explains. “If the policy transmission mechanism is dead, then we wind up like Japan and there is no growth.”

Watch the full clip above for more.

Could The U.S. Have 'Shanghai Accord'-Style Liquidity Boost? - the macro show