There is no question that the recovery from the global recession triggered by the 2008 financial crisis has been unusually lengthy and anemic.

For highly indebted governments, low interest rates are critical to keep debt levels sustainable and ease pressure to restructure debt and recapitalize banks. The shift to a high sovereign-debt-yield equilibrium would make it impossible to achieve fiscal balance.

Monetary policy should never have been expected to shift economies to a sustainably higher growth trajectory by itself.

Michael Spence Quotes