Economic Policy: We Have Run Out Of Rabbits To Pull Out Of Hats

Until last year, policymakers could always produce a new rabbit from their hat to trigger asset reflation and economic recovery. Zero policy rates, QE1, QE2, credit easing, fiscal stimulus, ring-fencing, liquidity provision to the tune of trillions of dollars and bailing out banks and financial institutions - all have been tried. But now we have run out of rabbits to pull out of hats. - in FT.com