The U.S. offers a huge amount of aid, with huge side effects

   US President Biden signed a $1.9 trillion economic rescue plan on March 11. In less than a year, the United States has introduced a total of about 6 trillion U.S. dollars in financial relief measures. Experts and scholars from many countries believe that the Tianliang rescue plan is difficult to effectively boost the US economy in the medium and long term, and its scale is larger than actual demand, which will strengthen inflation expectations and affect global financial stability.
   Horst Lecher, a professor at the Frankfurt School of Finance and Management in Germany, said that the economic rescue plan will stimulate domestic demand in the United States, but domestic and overseas supplies may not keep up with the pace of demand expansion due to the new crown epidemic, thereby pushing up prices. Once market interest rates rise in line with inflation, financial markets may become unstable.
   Hayri Turk, a professor at the Illinois Institute of Technology in the United States, said that the scale of the economic rescue program far exceeds the effective absorption capacity of the U.S. economy and will lead to overheating of the economy and rising prices. The United States implemented an expansionary monetary policy, which raised the prices of various assets and opened the door to market bubbles. This speculative rise will not last.
   Kay Daniel Neufeld, an economist at the Centre for Economics and Business Research in the United Kingdom, said that in recent weeks, the yields of long-term U.S. Treasury bonds have risen sharply, attracting some investors to switch to U.S. Treasury bonds and putting pressure on the currencies of some emerging market economies. , And threaten the financial stability of countries with large dollar debts.
   Neufeld said that the United States should effectively supervise the financial sector to ensure the smooth operation of financial markets and prevent the subprime mortgage crisis and other events that endanger the financial stability of the United States and the world from happening again.
   University professor Nicolas Kachanoski of the Argentine Macroeconomic Research Center questioned the scale of the rescue plan, believing that the United States uses the special status of the U.S. dollar as an international reserve currency to allow international capital to bear the cost of the country’s economic stimulus plan.
   David Root, chief economist of the Efficient Group, a well-known South African investment company, said that the United States is the world’s largest economy and the US dollar is the world’s most important currency. The United States has an obligation to play a role in promoting global financial stability and inclusiveness. An important role, and it should also play a positive role in multilateral financial institutions.
   Lisovolik, project director of the Russian think tank “Valdai” International Debate Club, believes that the rescue plan will provide some support for the global economy, but it also comes with the risk of overheating financial markets. He said that the United States needs to take measures to promote market opening and development, and adopt an open attitude in areas such as trade, innovation cooperation, and scientific and technological cooperation, in order to truly promote the sustainable development of the global economy.