SMLL - Financialized COVID-19 Economy: Helicopter Money Anyone? Part 2
As described in Part 1 (see here), the financialization of the US economy created a fragile economy well ahead of the arrival of COVID-19. The turn toward finance (financialization) began during the 1980s and matured during the 1990s and 2000s, as constraints were removed from financial markets. In response to the increase in financial instability, the Federal Reserve responded with the "Fed Put," an asymmetric monetary policy that protected investors from downside risk. This encouraged investors to accelerate risk-taking. A series of debt-induced boom-bust cycles (see below) continued to build up until the global