1, fiscal policy is invalid, only in two cases, fiscal policy is invalid. First, full employment. Expansionary fiscal policy will lead to an increase in nominal total expenditure, but full employment means that higher expenditure will immediately raise prices and wages, which will lead to inflation, instead of letting more people get jobs. The second situation is that the cash balance is at the lowest level that can no longer be reduced, so if the government does not print more money, it is technically impossible to achieve more transactions;
2. If the monetary policy is invalid, the landlord can refer to Keynes's liquidity trap. There are also many arguments in this respect, such as the ineffectiveness of monetary policy under the common fixed exchange rate system, the psychological expectation of speculators and so on. This will question the effectiveness of monetary policy. The landlord had better combine all kinds of conduction mechanisms and make a comprehensive analysis.
1, economic depression, in addition to a sharp drop in output, is usually accompanied by a long period of general bankruptcy, high unemployment rate, declining confidence and depressed investment. Recession is a mild form of industrial and commercial depression. It has many similarities with economic depression, but the degree is weak and the duration is short.
2. stagflation (English: stagflation), referred to as stagflation or stagflation, in economics, especially macroeconomics, refers to the economic phenomenon that stagflation, unemployment and inflation are rising at the same time. Generally speaking, prices are rising, but the economy is stagnant. Is the result of the long-term development of inflation. Stagflation, as a compound word, comes from 1965 British politician Iain Macleod's speech in Parliament. This concept is noteworthy in part because it is based on the post-war macroeconomic theory that inflation and economic recession cannot coexist, and also because it is generally believed that stagflation, like fiscal deficit, is difficult to cure once it starts. In the political field, stagflation is measured by inflation pain index (simply the sum of unemployment rate and inflation rate), which is used to influence the US presidential elections of 1976 and 1980.