12 In light of this research, one might ask why the Fed and other major central banks chose not to pursue such a policy. 13 The answer lies in the uncertain distance between models and reality. For makeup strategies to achieve their stabilizing benefits, households and businesses must be quite confident that the “makeup stimulus” is really coming.
Mario Draghi: The economic policy of Federico Caffè in our times Speech by Mr Mario Draghi, President of the European Central Bank, to mark the centenary of the birth of Federico Caffè at the Lecture room of the School of Economics and Business Studies “Federico Caffè”, Rome, 12 November 2014.