"The 2010s were also an absolutely dismal decade for private investment, which collapsed in the aftermath of the global financial crisis, then slowly recovered to a level well below that of other recent business-cycle peaks. Our productive capacity is substantially lower than it could be, because—for years—we did not add to and upgrade the nation’s stock of critical infrastructure, plant and equipment. " I believe an important reason for that outcome is exactly because AD was kept "depressed" by an inadequate monetary policy. An "explanation" here: https://marcusnunes.substack.com/p/a-21st-century-us-monetary-story?s=w
"The 2010s were also an absolutely dismal decade for private investment, which collapsed in the aftermath of the global financial crisis, then slowly recovered to a level well below that of other recent business-cycle peaks. Our productive capacity is substantially lower than it could be, because—for years—we did not add to and upgrade the nation’s stock of critical infrastructure, plant and equipment. " I believe an important reason for that outcome is exactly because AD was kept "depressed" by an inadequate monetary policy. An "explanation" here: https://marcusnunes.substack.com/p/a-21st-century-us-monetary-story?s=w
I agree! I just also think it's ok to look for ways in which fiscal policy can be of use.
It was very useful this time around when it focused on RELIEF! I think its ineffective and likely distortionary when used as "stabilization tool".