We can recall the embarrassing results of the G20 agreed plan in Brisbane two years ago to generate an additional 2% in world growth via a long list of concrete reforms put forward by the IMF and the OECD. Less than half was implemented and in fact, the world economy now risks not even attaining what was then considered the baseline scenario.
So, on both the demand and supply sides, there are constraints to effective policy action. I would like to add two key issues to this discouraging perspective: one that aggravates the challenges with a different version of secular stagnation and another that offers some hope related to the role of monetary policy.