UBS on U.S. fiscal policy

Can fiscal policy push priches lower?

*The fiscal response to the pandemic is a mix of stimulus and anti-depressant. Misunderstanding what fiscal policy has done fuels mistaken ideas about inflation risks

*Most recent fiscal deficit increases have been anti-depressant. Anti-depressants are aimed at preventing growth from falling, rather than pushing growth higher

*European furlough schemes and payments to US states tried to prevent growth from falling as pandemic restrictions were applied. Such policies fight deflation rather than promote inflation