In the absence of aggressive fiscal policy, monetary authorities are experimenting with ever increasingly 'exotic' instruments. frankly they have pushed monetary policy to unexpected levels. They are to be complemented. But it can only be pushed so far, the ultimate dangers are well documented, yet governments refuse all but the most timid fiscal levers. Indeed some move fiscal policy pro-cyclical and amplify the recession. I find it difficult to criticize aggressive central banks, when governments have abandoned the challenge. And I do agree, a great future price may be paid.
Hindsight is never 20-20; it is revisionist-memory. Errors are diminished, insights embellished. Learning the lessons of our past remains a challenge - our hindsight still passes through the prism of our pre-conceptions and intellectual architecture. Our ability to learn lessons from our past should never be taken for granted and the danger of learning the wrong lessons should not be unheeded.