"If you diagnosed the horrific financial crisis at the end of 2008 and early 2009 as a temporary depression, the prescription was clear: vast amounts of antidepressants in the form of the biggest fiscal and monetary stimulus the world has seen. Eventually the patient would feel cheerier and the world a brighter place. In time, it could be weaned off the medicine. If, in contrast, you thought growth had been powered by an unsustainable rise in debt, then a different metaphor for the stimulus seems apposite: giving methadone to a heroin addict. The effects of the medication would be transitory and the patient would at some point have to go cold turkey".
How should the Fed respond to current economic conditions?
The Economist conducts a debate involving a few prominent economists:
http://www.economist.com/economics/by-invitation/questions/what_actions_should_fed_be_taking
How should the Fed respond to current economic conditions?
The Economist conducts a debate involving a few prominent economists:
http://www.economist.com/economics/by-invitation/questions/what_actions_should_fed_be_taking