How will central bankers cope when the next recession comes?

Policymakers who think fiscal policy alone is enough are setting themselves up for a shockIf you ask most central bankers around the world what their plan is for dealing with the next normal-size recession, you would be surprised how many (at least in advanced economies) say “fiscal policy”. Given the high odds of a recession over the next two years – about 40% in the US, for example – monetary policymakers who think fiscal policy alone will save the day are setting thems