Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

Right. That’s an obvious problem. But the other problem is that we have to get more demand stimulation in the rest of the world. And as Karen just mentioned, the zero-bound issue really gets in the way of that. We talked a little last week about fiscal expansion, and that possibility is always there, but I think demand switching has two real problems. One is how do we get there, and the other is how do we switch demand on in the countries where we have to switch it on. It’s not so easy. So, I’m all for talking about this and so forth, but I think it’s a very hard problem—a lot harder than I previously thought it was.

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