It is terrain: in which the relationship between the central bank and the government is subtly changed; where the distinction between fiscal and monetary policy is less clear; from which it may be hard to exit in the near term; and a side effect of which may be wastage, over time, in some elements of market capability.
The effectiveness of both monetary and fiscal policy is strongly amplified by possible international co-ordination of their use. Some exit solutions The whole literature on global liquidity traps provides an overall consistent view of how the world economy works and leads to a bleak outlook on the feasible exit solutions from the present quagmire.