Citi's Buiter Calls Current Monetary Policy 'Land of Make Believe'

The video discusses the economic concept of the effective lower bound and its historical context, highlighting the challenges faced by central banks in stimulating the economy. It delves into the 'land of make believe' where rate cuts are unlikely, and explores the liquidity trap, emphasizing the limited monetary policy space available to advanced economies. The discussion includes insights from Professor Krugman on the international ramifications and the necessity of fiscal policy as part of the economic strategy.

In what ways are Europe and Japan experiencing shortages in monetary policy?

What role does fiscal policy play in addressing the limitations of monetary policy?