Latest Issue

Finance ministers have provided massive stimulus. What happens to your investments when they withdraw it?

Premature tightening is a grave risk to the wider economy—and to your portfolio

By Megan Greene   March 2021

What happens when he stops spending? Photo: Yui Mok/PA Wire

Few people are talking about austerity right now. Most of Europe, all of the UK and parts of the US remain in some form of lockdown, and even fiscal hawks accept this is not yet the moment to withdraw support. But as vaccines are distributed and pent-up demand released later this year, there’s a chance this accommodating stance will be rolled back prematurely, with major implications for the economic recovery—and investors. 

The risks of providing too little support far outweigh those of providing too much, and governments should worry about winning the Covid-19 war before they fret over…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to

More From Prospect