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"No amount of fiscal or monetary accommodation, however, can compensate for the necessary structural reforms in the euro area," he said.
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In the euro area, the situation calls for a policy game changer, with urgent steps to banking union (now finally moving ahead), fiscal integration, phased fiscal consolidation and monetary accommodation.
All G-20 countries have pledged to maintain fiscal and monetary accommodation for as long as is required to ensure a stable recovery.
In other words, there is no quick fiscal or monetary fix under the present circumstances.
Even a small amount of fiscal or monetary tightening may be enough to do that.
Unlike previous pre-election periods, he has not felt obliged to pull fiscal or monetary levers to pump the economy.
"The recovery is becoming self-sustained, which means there will be less need for fiscal or monetary policy support".
"Fiscal or monetary policy doesn't have the power to create new value" for Japan, he said.
The Obama administration has been outspoken in saying it does not want a quick end to stimulus policies, whether fiscal or monetary.
He thinks that, when bad times hit, the government should just let events play out, rather than use discretionary fiscal or monetary policy to combat them.
Stronger demand will eventually solve the problem.The main point of contention is whether policymakers should try to speed up that process with yet more fiscal or monetary stimulus.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com