We have policy failure because our leaders are executing measures from the standard issue economics literature. Zero interest rates are supposed to trigger growth. Quantitative Easing is supposed to depress rates further and somehow trigger employment gains via various investment channels. Bank loans were supposed to increase given extremely favorable rate and capital environment.
Neither of these have done what our policy makers thought they would do. At what point (another 3 years?) will they jettison their views and support alternative measures? We are witnessing the monetary policy equivalent of The Light Brigade or various Russian aspirations by western Europeans...throwing more fungible items at the problem without regard to the soundness of underlying assumptions.
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