They argue that it would have a stronger disciplinary effect on the policies of reserve currency issuers, which would need to address swiftly any worsening in their fundamentals in the face of competitive pressures created by the existence of other reserve currency issuers.
12 The employment rebound suggests that strong measures – such as those the Fed took during and after the crisis – can prevent even sharp job losses from becoming permanent. But the productivity slowdown suggests that monetary policy cannot, by itself, avert all of the damage. This consideration raises the question I mentioned a moment ago.