In such a situation, monetary policy cannot be the only, or even the main tool for reflating the economy and the financial system. Fiscal policy will have a key role to play, in its various configurations.
And, in the post-World War II period, the relaxation of trade restrictions opened up important foreign markets to the new products being developed by U.S. corporations. More generally, the United States has, over time, consistently and successfully responded to competitive pressures from abroad, often through technological innovations that create new markets and opportunities.