"The solution is straightforward. It is to fix the problem of deficient
demand not by attempting to further loosen monetary conditions, but by boosting public spending.
Governments should borrow to invest in research, education, and
infrastructure. Currently, such investments cost little, given low
interest rates. Productive public investment would also enhance the
returns on private investment, encouraging firms to undertake additional
projects."
Has the world reached the limits of monetary policy?
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