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I think this simplifies things a bit too much. Fiscal and monetary policies are administered by two separate branches of government, the Fed and Congress. The F
by pradn 5y ago
I think this simplifies things a bit too much. Fiscal and monetary policies are administered by two separate branches of government, the Fed and Congress. The Fed is only nominally under democratic control, with just the board members approved by Congress every few years. They're literally different hands, so one may giveth and one may take away. Conventional Keynesian theory specifies both fiscal and monetary stimulus when a recession occurs. I'm curious to know what other fiscal policies could have had a similar impact given the very low benchmark interest rates already. Anyone have some thoughts on policy alternatives?