Noahpinion: How is Abenomics doing?: Last December, Shinzo Abe swept to power, promising to force the Bank of Japan to re-inflate the economy at any cost, boost stimulus spe...
My take? Read the whole thing and you'll see why I am suspicious about the capacity of central banks to do all that much when they hit the ZLB. Sure, QE does stuff. But not stuff that truly changes the game in the real world.
That's the domain of fiscal and budget policies. And that's what we're not seeing in our world.
I think Bernanke would agree: "[The Fed] cannot carry the entire burden of ensuring a speedier return to economic health."