Economic Growth |
Stimulate economic growth and employment |
Positive, helps recover from recession/stagnation |
Limited impact on real economic growth |
Negative, artificial stimulus with long-term risks |
1) Disagree on extent of expected impact |
Asset Prices |
Increase in stock and bond prices |
Positive, boosts wealth and confidence |
Asset price bubbles and market distortions |
Negative, increases risk of future crashes |
2) Agree on impact, disagree on desirability |
Inflation |
Moderate increase, closer to target rate |
Positive, avoids risks of deflation |
Significant increase in inflation |
Negative, erodes purchasing power |
1) Disagree on extent of expected impact |
Interest Rates |
Low interest rates maintained |
Positive, promotes lending and investment |
Interest rates kept artificially low |
Negative, distorts market signals |
2) Agree on impact, disagree on desirability |
Exchange Rates |
Currency devaluation |
Positive, boosts exports and competitiveness |
Currency devaluation |
Negative, increases import costs |
2) Agree on impact, disagree on desirability |
Central Bank Independence |
Maintains central bank's ability to act |
Positive, preserves policy flexibility |
Undermines central bank independence |
Negative, politicizes monetary policy |
1) Disagree on extent of expected impact |
Income Inequality |
Limited direct impact |
Neutral, focus on overall economic growth |
Exacerbates wealth inequality |
Negative, benefits asset owners disproportionately |
2) Agree on impact, disagree on desirability |
Financial Stability |
Supports financial system stability |
Positive, reduces risk of financial crises |
Encourages excessive risk-taking |
Negative, increases systemic risks |
1) Disagree on extent of expected impact |