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Well, its a hacker news comment. However I can tell you that evidence of the fiscal multiplier has been a terrible and if you look at where monetary policy was
by nickik 8y ago
Well, its a hacker news comment. However I can tell you that evidence of the fiscal multiplier has been a terrible and if you look at where monetary policy was contracting fiscal multiplier is negative.
Also, there are tons of countries who already have successfully eased monetary policy at the ZLB. Switzerland, Denmark, Sweden and so on.
It was also in all monetary textbook before the crisis and was considered standard knowledge by many monetary economist. Even people like Krugman would agree that with setting a higher inflation target the Fed could have been more aggressive.