Experts argue that monetary policies have limits on what they can achieve against an impending recession.
"[It's] really, really difficult to get into that really, really narrow zone," said Stephen Miran, former senior advisor at the U.S. Department of Treasury."It's the difference between trying to land an airplane in a really wide and spacious open field versus trying to land an airplane on a very, very narrow piece of land with rocks and water on either side."
Some experts also argue that policies have a limitation on what they can achieve against an impending downturn. "Policy tends to operate with long lags, which means the ability to effect immediate change in the economy is quite slow. I also think that increasingly we live in a global economy where the cross-currents that are impacting the economic dynamics are very complex," said Lisa Shalett, chief investment officer, wealth management at Morgan Stanley.
"These are dynamics that the Fed doesn't have the tools to address and so to a certain extent, we do think that policymakers have certainly developed more tools to fight recessions," she said."But we don't think that you can rely on policymakers to prevent recessions"
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