Agronox posted:

Just to be clear, while much of the western world is still at, near, or below zero percent interest rates, QE is mixed (the US Federal Reserve stopped months ago and is letting its QE portfolio roll off), and so far as I know, no major economy with the possible exception of China is doing major infrastructure spending.


I don't think the wheels will come off, but the central bankers don't have many tools left in their box. And, really, that's okay because the solutions should be coming from the political process (Congress, parliaments, etc.) anyway. The best tool will still be increased government spending, although it is for some reason anathema to large segments of the population.

If there's a true deflation scare, I'm curious if we'd see the really heterodox policies come out--for instance, direct monetization of government spending by newly printed money.