The Keynesian End Point, A Curated Set Of Quotes That Explain Its Intricacies | Exploring Markets

The Keynesian End Point, A Curated Set Of Quotes That Explain Its Intricacies



"Keynesian endpoint is a phrase coined by PIMCO's Anthony Crescenzi in an email note to clients in June 2010 to describe the point where governments can no longer stimulate and rescue their economies through increased government spending due to endemic levels of pre-existing government debt." - Wikipedia

"“Keynesian Endpoint.” The gist of this concept is that many governments have maxed out their credit lines. As a result, they can no longer borrow as much as they need to prop up their flagging debt-burdened economies. So their only remaining policy options are to devalue their currencies and to restructure their debt" - Ed Yardeni

"For many reasons, this “duration tailwind” for Treasuries can’t last, particularly because the United States has reached the Keynesian Endpoint, where the last balance sheet has been tapped. In addition, with inflation expectations rising in the context of low levels of initial jobless claims, and with Federal Reserve officials themselves expressing reluctance to go beyond Quantitative Easing (QE) II, the Fed’s Treasury buying is expected to end in June, leaving others to carry the Treasury’s heavy load." - Anthony Crescenzi