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"The scale of the fiscal response in particular was dependent" on what Congress would allow.
Mexico's central bank convenes later this week to debate whether a fiscal response at this stage is necessary.
"We need to have coordinated fiscal response — stimulus," said Justin Yifu Lin, senior vice president and chief economist at the World Bank.
"We're talking about not just monetary response, we're talking about fiscal response, and we're talking about military response," Mr. Applegate said.
Videgaray, who earned a doctorate in economics from M.I.T. (his thesis: "The Fiscal Response to Oil Shocks"), has a reputation for nerdish brilliance, and also for arrogance.
Jack Meaning, a NIESR research fellow, said: "If there isn't a fiscal response, monetary policymakers should be using as much of a sledgehammer as they can.
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Mr. Blanchard said the fiscal responses of several major countries had made "a gigantic difference".
Mr. Blanchard said that the fiscal responses of several major countries had made "a gigantic difference".
The massive monetary and fiscal responses to the financial crisis seem to have successfully fended off the threat of a new Great Depression.
Reducing the surplus and even running a deficit for a few years is the orthodox fiscal policy response to a recession, undermining the claim by Democrats that Republicans are leading the economy off a cliff.
Mr Blanchard presented the results of an analysis which asked what level of fiscal policy response would have been necessary to keep Spain's current-account deficit at a constant 2.7%.
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