In other experimental work, O. Kryvtsov and L. Peterson (“Expectations and Monetary Policy: Experimental Evidence,” Bank of Canada Staff Working Paper 2013-44 [November 2013]) find that participants incorporate in their expectations the stabilizing responses of monetary policy to fluctuations in inflation. -8That said, there are some differences.
Governments did not adopt sufficiently counter-cyclical policies to limit their own accumulation of debt or to counteract the accumulation of debt in the private sector.