Pushing on a string: when CB rate cuts and QE fail to stimulate spending, the transmission mechanism is broken. This is the condition requiring MP3 (direct fiscal + monetary fusion). Diagnosis: low rates + QE + still low growth = pushing on string.
Pushing on a string: when CB rate cuts and QE fail to stimulate spending, the transmission mechanism is broken. This is the condition requiring MP3 (direct fiscal + monetary fusion). Diagnosis: low rates + QE + still low growth = pushing on string.