Josh Frydenberg covid-19
(Image: AAP /Daniel Pockett)

How much stimulus is enough for an economy in deep recession?

The government has already pumped more than 4% of GDP into the economy in deficit spending in the six months to June. Its July fiscal update forecast nearly 10% of GDP in deficit spending for this financial year already, with a deficit of around $185 billion.

From the torrent of budget leaks, and the occasional actual budget scoop, the deficit to be unveiled tomorrow is likely to be comfortably above $200 billion, or well over 10% of a shrunken GDP.