Stimulus Needs to Pick Up the Slack for Monetary Policy: State Street's Weis

The transcript discusses the surprising economic momentum in developed markets and the role of policy changes, particularly in emerging markets. It highlights the shift from traditional monetary policy to more innovative measures like quantitative easing and fiscal stimulus. The discussion also covers the impact of these policies on market liquidity and the challenges faced by central banks at the zero lower bound. The role of fiscal stimulus in economic recovery is emphasized, with a focus on China's influence on emerging markets. The transcript concludes by noting the regional impact of China's economic policies.

What was a significant factor in the economic momentum observed in emerging markets?

• Increased consumer spending

• Central bank rate hikes

• Innovative fiscal policies

• Reduction in global trade

How did some emerging markets manage to avoid the worst-case scenario of a 'race to the bottom'?

• By increasing export tariffs

• Through asset purchase programs

• By reducing public spending

• Through currency devaluation

In a post-cycle universe, what becomes crucial for economic stability in emerging markets?

• Enhanced fiscal stimulus

• Increased foreign investments

• Higher interest rates

• Monetary policy adjustments

What is a notable difference in China's response compared to previous economic crises?

• Increased monetary stimulus

• Reduction in fiscal policies

• Focus on infrastructure spending

• Higher interest rates

Which countries have returned to pre-pandemic economic activity levels according to the discussion?

• Only China and a few select countries

• All emerging markets

• None of the countries

• Most developed countries