Schlosstein: Close to the End for Economic Stimulus

The video discusses the current state of monetary policy, highlighting its supportive role in economic growth but also its limitations as we near the end of its effectiveness. It contrasts the heavy reliance on monetary policy with the lighter use of fiscal policy, suggesting a need for adjustment. The impact of monetary policy on asset prices is examined, noting that while it has supported prices globally, the capacity for further support is limited, leaving the economy vulnerable to slow growth.

What is the current state of monetary policy according to the transcript?

• It is highly effective and has many options left.

• It is primarily focused on fiscal measures.

• It is nearing its limits and needs fiscal support.

• It is not supportive of economic growth.

What has been the primary focus for economic growth over the past seven years?

• Environmental policy

• Monetary policy

• Fiscal policy

• Trade policy

What is the potential effect of a new round of QE on asset prices?

• It will decrease asset prices.

• It may not have a significant impact anymore.

• It will definitely boost asset prices significantly.

• It will have no effect on asset prices.

What supports global asset prices according to the transcript?

• Strong fiscal policy

• High inflation rates

• Loose monetary policy and expectations of intervention

• Strict monetary policy

What is the economic outlook described in the final section?

• A rapidly growing economy

• A stable and robust economy

• A slow-growth economy that is vulnerable

• An economy with unlimited monetary support