Our over-reliance on monetary policy is the …

I am going to argue here that monetary policy is both less effective than fiscal policy, and that over-reliance on it unnecessarily politicizes monetary policy by putting unelected officials in too prominent an economic role. I would argue that monetary policy should never be the primary macro policy driver in any economy. Yet, when you look around the world it is in almost every advanced economy. It is certainly that way in the eurozone, where interest rates are negative and the largest economy runs fiscal policy via a debt brake and a "black zero" no-deficit rule. And it's mostly that way in the United States, where every word a Fed official utters is parsed to discern what it means for the future of the economy.

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