There’s plenty of ammo in the can, they just don’t understand economics.
They could, if desired, lower bank reserve requirements while *raising* interest rates...if they wanted to give a quick 1-time jump start to the economy.
...but there’s only so much that monetary policy can do. Worry about it doing more is worrying about things that you have no control over...useless stress in your life when you fall into that trap.
For an actual recovery, fundamentals have to be changed, not monetary policy (if monetary policy alone could save an economy, no nation in the world would *ever* have a recession, at all).
For example, USA companies currently hold $2.2 Trillion earned in foreign nations, offshore.
Because of our high corporate tax rate on foreign earnings (if Repatriated), those monies stay offshore (and untaxed that way)...out of our economy here.
Well, if you changed that corporate tax rate on Repatriating foreign profits for our domestic companies, that $2.2 Trillion would flood into the current USA domestic economy.
That’s a 12.9% GDP boost!
Washington policy wonks would faint from such an economic rush.
Approving the Keystone Pipeline is another fundamental. Approve it and thousands get hired. New construction from private monies commences.
These are easy things to do if you understand economics and *want* the economy to flourish.
Change economic fundamentals if you want sustainable economic growth.
You could give away some federal land ala the Oklahoma Land Rush. Poof! Instant economic boom.
Lots of ways to improve an economy...it’s just that policy-makers and politicians in DC+NYC don’t have the first clue about economics.
They know - but to fix anything they would have to give up some power.
And just like Mr. Thompson in Atlas Shrugged, that idea freaks them out so much they refuse to even consider it.