Fiscal policy (manipulating government spending and taxes) has enjoyed a comeback despite evidence it is typically too little too late or largely offset by changes in private-sector spending; the comeback rests on the view that the Fed is 'out of bullets' with rates at zero, but this is wrong because monetary policy still governs the economy's behavior.

causalpending

Speaker

Russ Roberts

Evidence Quote

the reason it's made a comeback is the view that well the Fed is out of bullets right interest rates can't go any lower so they can't do any more but I think that's wrong

Source

Larry White on Hayek and Money 02/01/2010EconTalk
Created: 6/17/2026, 10:31:20 AM

My Notes

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