When interest rates are very high, the economy is in a liquidity trap, and monetary policy may be ineffective in fighting a recession.
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Q257: In the 1970s and first half of
Q258: Most economists favor discretionary monetary policy because
Q259: Economists who agree with the Great Moderation
Q260: The Great Moderation consensus is that expansionary
Q261: The Great Moderation consensus is that the
Q263: Many economists argued against using discretionary fiscal
Q264: The Great Moderation consensus includes the idea
Q265: Many economists favored using discretionary fiscal policy
Q266: Discretionary fiscal policy may destabilize the economy
Q267: Economists today generally believe that fiscal policy
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