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But it will require more stimulative monetary policy and inflation overshooting for a while.
"It looks like policy has turned the corner and is more stimulative," he said.
Higher inflation implies lower, and thus more stimulative, real interest rates.
In fact, the Fed, like most economists, believes buying any quantity of bonds makes monetary policy more stimulative.
In addition, more stimulative aggregate demand policies are perceived to result in balance of payments difficulties at existing exchange rates.
Until then, as growth continues to slow, the authorities are likely to come up with yet more stimulative measures.
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(His tonsorial kinetics tend more to stimulative tugging and twisting).
"It helps to encourage other countries to take more domestic stimulative measures to offset the negative impact of the rise of their currencies".
Although the case for additional fiscal stimulus is overwhelming, it would be much better to find more economically stimulative alternatives to simply extending the temporary payroll tax cut.
Short of replacing the entire payroll tax cut with a more progressive and stimulative refundable tax credit, a "hold harmless" provision would make for sound economic and social policy.
In fact, Ms. Fosler argued, the White House erred politically by calling more attention to the stimulative effects of cutting taxes on dividends than the effects of changes in tax credits and rates.
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