Larry summers, the former treasury secretary and an influential policy maker in US write in Project syndicate op-ed
“If reducing rates will be insufficient or counterproductive, central bankers’ ingenuity in loosening monetary policy in an environment of secular stagnation is exactly what is not needed. What is needed are admissions of impotence, in order to spur efforts by governments to promote demand through fiscal policies and other means.
Instead of more old New Keynesian economics, we hope, but do not expect, that this year’s gathering in Jackson Hole will bring forth a new Old Keynesian economics.“
The German finance minister also acknowledged the failure of monetary policy when he was quoted
“Finance Minister Olaf Scholz suggested Germany could muster 50 billion euros ($55 billion) of extra spending in an economic crisis, putting a number on a possible fiscal stimulus for the first time.”
what is missing from a picture is “Recession”
In my view we might not have to wait more than couple of months to see Germany slipping into recession.
The other country which is in news for slowing growth” India” also takes some measure for boosting growth and this is over and above monetary policy easing and will entail higher fiscal deficit.
Winds are changing and whereas monetary policy was instrumental in creating Asset inflation… we might be at an inflection point in world where baton is passed on to fiscal policy for growth revival.