Canada Unveils Stimlus Package Worth 3% of GDP

from Zero Hedge

When discussing the most important hypothetical question facing traders today, namely what size of fiscal stimulus would be sufficient to put a floor in the market, yesterday we showed charts from JPMorgan economists estimating the amount of fiscal thrust in crises over the past 20 years expressed as a percentage point of real GDP growth. The data highlighted the following principle: Fiscal thrust in the DM economies has tended to aim for 1% to 2% of GDP during recessions, and so far the closest to hit that number are the UK and Australia.

[…] And as we wait to see what the final terms of what the fluid US fiscal stimulus will be, which at last count was said to approach an impressive $1.3 trillion, moments ago Canada’s Prime Minister Trudeau surprised – hopefully to the upside – when he announced a C$82BN stimulus package as part of the government’s fiscal measures to deal with coronavirus impacts on the Canadian economy, one which amounts to roughly 3% of GDP.

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