Fiscal policy balances the need to support growth in such conditions with the need to maintain a reasonable deficit and manage the public debt burden over time to minimize the burden of interest payments in the future, and to provide the government room to act, termed the fiscal space, in times of crisis.
In addition, the statistical base on which monetary authorities had to base their assessment of the state of the economy at that time was thin. Examples of tardy exits from monetary accommodation can be found more easily and in more recent times. I will refer to two notable cases. The first case is the “Great Inflation” of the 1970s.