Although low oil prices could boost consumption, their impact on growth could be mixed, with oil-exporting countries particularly vulnerable and they may be negatively affected by these developments in the form of deteriorating fiscal and external balances. This may further result in sovereign wealth liquidating some of their investment holdings.
Indeed, perhaps the best way to raise output today is to remove the drag on confidence that results from such uncertainties. Summing up, there is a large degree of interaction between monetary policy and other policies that may in principle be geared towards different objectives.