Newton Investment Management

For over a decade our thematic framework – and specifically our state intervention theme – has highlighted how authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth.

We long held the view that monetary policy would be unsuccessful in returning nominal growth rates to the levels they were at prior to the 2007-8 financial crisis, owing to both cyclical and structural factors, and had anticipated that the perceived solution to low nominal growth would be the unification of monetary and fiscal policy. However, until Covid-19 asserted itself out of the blue at the start of 2020, the catalyst for such a transformation was not obvious.

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