Re:The Fed’s imminent interest-rate decision – Is America re...
by irln on Saturday December 12, 2015 @01:07PM
(#10723520)
My point is continuing extraordinary measures for seven years is contra to what these measures were initially articulated to address (e.g. emergency conditions != weak conditions).
You can have stimulus in different forms, different points of time, and different levels.
So why would continuing policies meant to help? Because discontinuing them would have a significant detrimental impact.
Based on this point of view, stimulus and monetary policy have no effect, so the financial crisis should have been left to run its course. That would have been a terrible outcome, and we would be worse of than we are now.