As central bankers across the world have executed formerly-unconventional monetary policy maneuvers in efforts to revive output and price growth, they have become increasingly frustrated with the lack of assistance from fiscal policymakers.
The European Central Bank has plenty of room to maneuver on monetary policy.
The measured response raised questions about whether the central bank, reluctant to take orders from politicians on monetary policy, was merely maneuvering to get government officials off its back.
WASHINGTON — The world's most developed economies, which have been racking up spending since the mid-1960s, face record levels of debt as a result of the 2008-9 financrisisrisis and have little room for maneuver, the International Monetary Fund warned on Wednesday.
It was pessimistic about Japan, calling prospects for a recovery "distant" and adding that fiscal and monetary policy had "limited room for maneuver".
The central bank said it also may limit the monetary policy committee's "room for maneuver" over the medium term, and may also affect the pace at which restrictions on capital flows can be relaxed.
The tone of his remarks suggested that the central bank might feel it had more maneuvering room to relax monetary policy.
Mr. Trichet's elusiveness, like Mr. Greenspan's, keeps him from being pinned down by legislators on monetary issues, leaving him more room to maneuver in setting interest rates.
And there is less room for maneuver to counter these shocks through traditional fiscal and monetary policies.
Despite that, the maneuvering before this week's meetings of the International Monetary Fund suggest that the big players may not be as ready as they claim.
