#Fincabulary16 – Keynesian Put

Meaning – It is the expectation that markets and the economy will be supported by fiscal policy stimulus measures.

Fiscal policy stimulus, including reductions in taxes and increased government spending, are generally aimed at giving a direct boost to the real economy, although financial markets should also expect the indirect benefits of strengthening economic growth. A renewed support for Keynesian-style fiscal stimulus measures have lead to expectations that governments around the world will use their spending power to boost the economy, and in turn, help support asset prices.

 

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