My impression is that without a shift back to uniformly favorable market internals, the continued faith in monetary support may prove to be the same awful bet it was during the 2000 - 2002 and 2007 - 2009 collapses, both which were accompanied
by aggressive monetary easing all the way down.
Not exact matches
Moreover, policymakers have been
aggressive in supporting the economy
by easing monetary policy and
by implementing a large fiscal - stimulus program.
But if you examine the persistent and
aggressive easing by the Fed during the 2000 - 2002 and 2007 - 2009 plunges, it's clear that
monetary easing has little effect once investor preferences shift toward risk aversion — which we infer from the behavior of observable market internals and credit spreads.