From the Functional Finance perspective, government formulated economic policy within a capitalist, free market system is, and has a strong historical record, as the most effective route to sustainably manage the economic cycle.
However, the dominant narrative for the last 30 years has fostered the belief, lead by the lords of finance, that government policy was a burden, a drag on the economy. Only monetary policy levers, coordinated by central banks were require to properly manage the economy. They were the experts after all in "managing" money.
Below from Bloomberg:
Larry Fink, CEO at BlackRock-a large investment firm, talks about how fiscal policy can drive a continuing market rally, damage done by dependence on monetary policy, and the benefit that fiscal stimulus would provide to banks.
However, the dominant narrative for the last 30 years has fostered the belief, lead by the lords of finance, that government policy was a burden, a drag on the economy. Only monetary policy levers, coordinated by central banks were require to properly manage the economy. They were the experts after all in "managing" money.
Below from Bloomberg:
Larry Fink, CEO at BlackRock-a large investment firm, talks about how fiscal policy can drive a continuing market rally, damage done by dependence on monetary policy, and the benefit that fiscal stimulus would provide to banks.