Indeed, the authorities' response was not limited to monetary stimulus.

There is much greater scope for fiscal stimulus to boost growth, and much smaller scope for monetary stimulus.

But monetary stimulus is often in reality just as selective as bailouts.

Failure to design an effective fiscal stimulus shifted the burden to monetary policy.

In normal times, the Fed s response extremely monetary stimulus would be highly inflationary.

The slowdown has predictably led to calls for further fiscal and monetary stimulus.

It has already aggressively loosened monetary policy, and it can employ further fiscal stimulus.

This suggests that the problem is more profound than one of insufficient monetary stimulus.

Then came the financial crisis, with the central government adopting fiscal stimulus and relaxing monetary policy.

It successfully contributed to a coordinated fiscal and monetary stimulus, which helped avert a cyclical meltdown.

But, despite large scale fiscal and monetary stimulus, they are not experiencing any dramatic economic rebound.

The government s prompt action to counter the crisis fiscal stimulus, growth packages, and monetary easing proved effective.

The brute force of massive monetary and fiscal stimulus rings hollow as a cyclical remedy to this problem.

Monetary and fiscal stimulus in most countries has done little to slow down the rate of job losses.

The heavy artillery of monetary and fiscal stimulus is being wasted on attempts to short circuit balance sheet repair.

Despite unprecedented fiscal and monetary stimulus, economic growth remains sluggish, and unemployment is stuck at a worrisomely high level.

Finally, after a good start, the ECB has now placed on hold the additional monetary stimulus that the eurozone needs.

He saw the G 20 as a vehicle for building consensus on coordinated monetary and fiscal stimulus and financial regulation.

Many emerging markets that were growing strongly before the crisis responded by injecting substantial amounts of monetary and fiscal stimulus.

The weak real economy and job market, together with high debt ratios, suggest the need to exit monetary stimulus slowly.

But the stimulus that is needed on both sides of the Atlantic is a fiscal stimulus. Monetary policy has proven ineffective, and more of it is unlikely to return the economy to sustainable growth.

The boost derived from Eurobonds may not be sufficient to ensure recovery additional fiscal and or monetary stimulus may be needed.

The brute force of massive monetary and fiscal stimulus rings hollow as a cyclical remedy to this problem. Another approach is needed.

That is why official data points to extremely low inflation rates over the next few years, despite the monetary and fiscal stimulus.

If anything, they claim, his fiscal stimulus, the bank bailouts, and US Federal Reserve Chairman Ben Bernanke s aggressive monetary policy made matters worse.

Monetary easing and fiscal stimulus, combined with structural measures to restore private firms to financial health, would stimulate household expenditure and business investment.

Republicans will blame their defeat in November on the Fed s monetary stimulus (if not on the ineffectiveness of Mitt Romney s blunder filled campaign).

The International Monetary Fund suggests that as much as 75 of the fiscal stimulus in the advanced countries comprises non discretionary counter cyclical measures.

As a result, the global economic powers have been left bickering about whether we need more monetary and fiscal stimulus or less of it.

Meanwhile, the main transmission channels of monetary stimulus to the real economy the bond, credit, currency, and stock markets remain weak, if not broken.

In order to control inflation and real estate bubbles, the central bank tightened monetary policy and the government refrained from another round of fiscal stimulus.

So the most important question the US now faces is whether continued fiscal and monetary stimulus can, as some believe, help to right the economy.

Consistent with recoveries from such recessions, demand has grown slowly, despite unprecedented fiscal and monetary stimulus, and that explains why the unemployment rate remains high.

These imbalances could be reduced by the US using fiscal rather than monetary stimulus, and China allowing the renminbi to appreciate in an orderly manner.

While speculators and bankers profit from the decline in interest rates that accompanies the Fed s asset purchases, the intended monetary and credit stimulus is absent.

Advocates of monetary stimulation sometimes argue that it is preferable because it is more neutral in its distributional effects, and that its benefits are spread more widely. But monetary stimulus is often in reality just as selective as bailouts.

If they take away the monetary and fiscal stimulus too soon when private demand remains shaky there is a risk of falling back into recession and deflation.

Thiel maintained that efforts to combat the recession through loose monetary policy and hyper aggressive fiscal stimulus treat the wrong disease, and therefore are potentially very harmful.

In its view, rewarding them with monetary stimulus keeping the boat afloat with more spending only relieves the pressure on national officials to do what is necessary.

Recent analysis by the International Monetary Fund suggests that as much as 80 of the fiscal stimulus in advanced countries during the current crisis is non discretionary.

Japan waited almost two years after its asset bubble collapsed to ease monetary policy and provide a fiscal stimulus, whereas in the US both steps came early.

A vicious circle, it seems, is at work. The way to break it, according to Summers, is to sustain monetary stimulus and boost demand aggressively through fiscal policy.

The first is that the world suffers from a shortage of aggregate demand relative to supply the second is that monetary and fiscal stimulus will close the gap.

As in Europe and the US, the worst will be avoided in 2012 only by kicking the can down the road with more monetary, fiscal, and credit stimulus.

Overall, the international financial authorities have handled this crisis the same way as they handled previous ones they bailed out failing institutions and applied monetary and fiscal stimulus.