In this sense, monetary economics is still in the process of development, and the questions raised by Hume are still under debate.26 Thank you. 26  Jordà, Singh, and Taylor (2020) highlight the hysteresis effects of monetary policy on capital and technology.
Consequently, the positive cycle of production, income, and expenditures that had supported the economic recovery during fiscal 1996 weakened from the beginning of fiscal 1997, exerting downward pressure on the overall Japanese economy. With respect to final demand components, the primary factor that weakened this positive cycle was the sluggishness of household expenditures.