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Q&A: The Impact of Fiscal Stimulus

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What are the possible impacts from the ballooning Federal Reserve balance sheet? Will this necessarily lead to an inflationary environment? Is deflation a possibility? Are there any charts or figures to illustrate the effects? EFF/KRF: Rather than provide a superficial answer to this question, Gene's colleague at Chicago Booth, John Cochrane, has a short but brilliant analysis of this and other issues related to recent government actions.


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