Monetary policy can not fix what is wrong with the economy.
The problem, intead, is regulatory uncertainty.
The result, he said, is that, as a consequence, businesses are afraid to do anything . . . like hire.
He proposed that put a moratorium on new regulations for three years, because “businesses can’t play the game when they don’t know the rules. It’s like not knowing whether you’re playing poker or bridge.”
When asked by the reporter if the economy is in a liquidity trap, where, at a certain point, lower rates don’t do anything.
His response was, “we’re not in a liquidity trap; we’re in a regulatory trap.”