--- title: "Meaning & Key Takeaway of: Monetary policy has less room to maneuver…" description: "\"Monetary policy has less room to maneuver when interest rates are close to zero, while expansionary fiscal policy is likely both more effective and les..." image: "https://sms4smile.com/quotes/i/652/ben-bernanke-1388_burden_monetary-policy-has-less-room-to-maneuve_1271294.png" --- # Monetary policy has less room to maneuver when interest… ![“Monetary policy has less room to maneuver when interest rates are close to zero, while expansionary fiscal policy is likely both more effective and less costly in terms of increased debt burden when interest rates are pinned at low levels.” quote by Ben Bernanke](https://sms4smile.com/quotes/i/652/ben-bernanke-1388_burden_monetary-policy-has-less-room-to-maneuve_1271294.png) [Download](https://sms4smile.com/quotes/i/652/ben-bernanke-1388_burden_monetary-policy-has-less-room-to-maneuve_1271294.png) [Open image](https://sms4smile.com/quotes/i/652/ben-bernanke-1388_burden_monetary-policy-has-less-room-to-maneuve_1271294.png) > “Monetary policy has less room to maneuver when interest rates are close to zero, while expansionary fiscal policy is likely both more effective and less costly in terms of increased debt burden when interest rates are pinned at low levels.” [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. When rates are near zero, fiscal policy becomes more effective and cheaper than monetary tools. **In simple terms:** Zero rates limit monetary policy; fiscal works better. Key Takeaway Use fiscal measures when monetary policy is constrained. Themes economics policy interest rates Mood analytical pragmatic Type economic financial When to use this quote - government budgeting - economic recovery - debt management Key Concepts fiscal stimulus monetary limits Questions to Reflect On - When should fiscal policy be prioritized? - How to balance debt with stimulus? A Different Perspective Fiscal expansion increases debt risk. ★ ★ ★ ★ ★ No ratings yet [Burden](https://sms4smile.com/quotes/about/burden/) [Customer](https://sms4smile.com/quotes/about/customer/) [Fiscal policy](https://sms4smile.com/quotes/about/fiscal-policy/) [Interest](https://sms4smile.com/quotes/about/interest/) [Monetary policy](https://sms4smile.com/quotes/about/monetary-policy/) ## Related quotes > [Europe unified its monetary policy through the euro before it unified politically, therefore sustaining member countries' abilities to pursue the kind of independent fiscal…](https://sms4smile.com/quotes/amity-shlaes/europe-unified-its-monetary-policy-through-the-euro-before-it-unified/) [Amity Shlaes](https://sms4smile.com/quotes/author/amity-shlaes/) > [Fiscal policy, monetary policy, they need to work together to try and raise the level of growth.](https://sms4smile.com/quotes/joe-hockey/fiscal-policy-monetary-policy-they-need-to-work-together-to-try-and/) [Joe Hockey](https://sms4smile.com/quotes/author/joe-hockey/) > [... it's important to have the right monetary policy. It's important for, to have the right fiscal policy. But it's nowhere near as important…](https://sms4smile.com/quotes/warren-buffett/it-s-important-to-have-the-right-monetary-policy-it-s-important-for/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [I'm not trying to be diplomatic. I'm trying to be more nuanced and realistic. I think there has to be a serious examination of…](https://sms4smile.com/quotes/stephen-harper/i-m-not-trying-to-be-diplomatic-i-m-trying-to-be-more-nuanced-and/) [Stephen Harper](https://sms4smile.com/quotes/author/stephen-harper/) > [I've always believed in expansionary monetary policy and if necessary fiscal policy when the economy is depressed.](https://sms4smile.com/quotes/paul-krugman/i-ve-always-believed-in-expansionary-monetary-policy-and-if-necessary/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [For too many of our young people, that once-promised American dream has given way to an American debt burden and a bleak job market.](https://sms4smile.com/quotes/reshma-saujani/for-too-many-of-our-young-people-that-once-promised-american-dream/) [Reshma Saujani](https://sms4smile.com/quotes/author/reshma-saujani/) > [ Public debt \[is\] a burden on all the people. ](https://sms4smile.com/quotes/calvin-coolidge/public-debt-is-a-burden-on-all-the-people/) [Calvin Coolidge](https://sms4smile.com/quotes/author/calvin-coolidge/) > [We believe that by removing a crippling debt burden we'll help millions of Africans improve their lives and grow their economies.](https://sms4smile.com/quotes/george-w-bush/we-believe-that-by-removing-a-crippling-debt-burden-we-ll-help/) [George W. Bush](https://sms4smile.com/quotes/author/george-w-bush/) > [Debt ceiling is something that, you know, any time the president asks for the authority to increase the debt ceiling, the debt burden on…](https://sms4smile.com/quotes/ron-johnson/debt-ceiling-is-something-that-you-know-any-time-the-president-asks/) [Ron Johnson](https://sms4smile.com/quotes/author/ron-johnson/) > [The basic prescription for preventing deflation is therefore straightforward, at least in principle: Use monetary and fiscal policy as needed to support aggregate spending,…](https://sms4smile.com/quotes/ben-bernanke/the-basic-prescription-for-preventing-deflation-is-therefore/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [The risk exists that, with aggregate demand exhibiting considerable momentum, output could overshoot its sustainable path, leading ultimately in the absence of countervailing monetary…](https://sms4smile.com/quotes/ben-bernanke/the-risk-exists-that-with-aggregate-demand-exhibiting-considerable/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [If I am confirmed, I am confident that my colleagues on the Federal Open Market Committee and I will maintain the focus on long-term…](https://sms4smile.com/quotes/ben-bernanke/if-i-am-confirmed-i-am-confident-that-my-colleagues-on-the-federal/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [Monetary policy is not a panacea.](https://sms4smile.com/quotes/ben-bernanke/monetary-policy-is-not-a-panacea/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [Monetary policy is a blunt tool which certainly affects the distribution of income and wealth, although whether the net effect is to increase or…](https://sms4smile.com/quotes/ben-bernanke/monetary-policy-is-a-blunt-tool-which-certainly-affects-the/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [Monetary policy cannot do much about long-run growth, all we can try to do is to try to smooth out periods where the economy…](https://sms4smile.com/quotes/ben-bernanke/monetary-policy-cannot-do-much-about-long-run-growth-all-we-can-try/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) ## More by Ben Bernanke > [If Wall Street crashes, does Main Street follow? Not necessarily.](https://sms4smile.com/quotes/ben-bernanke/if-wall-street-crashes-does-main-street-follow-not-necessarily/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [The Federal Reserve is not currently forecasting a recession.](https://sms4smile.com/quotes/ben-bernanke/the-federal-reserve-is-not-currently-forecasting-a-recession/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.](https://sms4smile.com/quotes/ben-bernanke/we-do-not-expect-significant-spillovers-from-the-subprime-market-to/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [In the past, Federal Reserve chairmen have not generally gone directly to the public.](https://sms4smile.com/quotes/ben-bernanke/in-the-past-federal-reserve-chairmen-have-not-generally-gone-directly/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars…](https://sms4smile.com/quotes/ben-bernanke/the-u-s-government-has-a-technology-called-a-printing-press-or-today/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [The Depression was an incredibly dramatic episode - an era of stock-market crashes, breadlines, bank runs and wild currency speculation, with the storm clouds…](https://sms4smile.com/quotes/ben-bernanke/the-depression-was-an-incredibly-dramatic-episode-an-era-of-stock/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [Community development has a long history of innovation and learning from experience.](https://sms4smile.com/quotes/ben-bernanke/community-development-has-a-long-history-of-innovation-and-learning/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [To be sure, the provision of liquidity alone can by no means solve the problems of credit risk and credit losses; but it can…](https://sms4smile.com/quotes/ben-bernanke/to-be-sure-the-provision-of-liquidity-alone-can-by-no-means-solve-the/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [Consumers going through foreclosure typically will see their credit scores drop, raising longer-term questions about their ability to rebound financially and perhaps pursue a…](https://sms4smile.com/quotes/ben-bernanke/consumers-going-through-foreclosure-typically-will-see-their-credit/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [If you are not happy with yourself, even the loftiest achievements won't bring you much satisfaction.](https://sms4smile.com/quotes/ben-bernanke/if-you-are-not-happy-with-yourself-even-the-loftiest-achievements-won/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [High levels of homeownership have been shown to foster greater involvement in school and civic organizations, higher graduation rates, and greater neighborhood stability.](https://sms4smile.com/quotes/ben-bernanke/high-levels-of-homeownership-have-been-shown-to-foster-greater/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [...the Federal Reserve has the capacity to operate in domestic money markets to maintain interest rates at a level consistent with our economic goals](https://sms4smile.com/quotes/ben-bernanke/the-federal-reserve-has-the-capacity-to-operate-in-domestic-money/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [The Federal Reserve will not monetize the debt.](https://sms4smile.com/quotes/ben-bernanke/the-federal-reserve-will-not-monetize-the-debt/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social…](https://sms4smile.com/quotes/ben-bernanke/to-avoid-large-and-unsustainable-budget-deficits-the-nation-will/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars…](https://sms4smile.com/quotes/ben-bernanke/the-u-s-government-has-a-technology-called-a-printing-press-or-today-2/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) [Explore all 247 Ben Bernanke quotes ](https://sms4smile.com/quotes/author/ben-bernanke/) ## More Burden quotes > [Everything I do is more memorable and I understand music more than ever now. It's not a burden to me.](https://sms4smile.com/quotes/seungri/everything-i-do-is-more-memorable-and-i-understand-music-more-than/) [Seungri](https://sms4smile.com/quotes/author/seungri/) > [I am at a point in my life where everything I have worked for starts to look like a burden, a weight on my…](https://sms4smile.com/quotes/simone-abou-samra/i-am-at-a-point-in-my-life-where-everything-i-have-worked-for-starts/) Simone Abou Samra > [Trump's enduring appeal is a resource to be harnessed by the Republican Party, not a burden to be jettisoned.](https://sms4smile.com/quotes/miranda-devine/trump-s-enduring-appeal-is-a-resource-to-be-harnessed-by-the/) [Miranda Devine](https://sms4smile.com/quotes/author/miranda-devine/) > [We want to free our citizens from the burden of excessive paper documents in every office. We want paperless transactions. We will set up…](https://sms4smile.com/quotes/narendra-modi/we-want-to-free-our-citizens-from-the-burden-of-excessive-paper/) [Narendra Modi](https://sms4smile.com/quotes/author/narendra-modi/) > [We cannot go back in time and change the past, but we can repent. The Savior can wipe away our tears of regret and…](https://sms4smile.com/quotes/dieter-f-uchtdorf/we-cannot-go-back-in-time-and-change-the-past-but-we-can-repent-the/) [Dieter F. Uchtdorf](https://sms4smile.com/quotes/author/dieter-f-uchtdorf/) > [The world around us is an increasingly hostile and sinful place. Occasionally that splashes onto us, and perhaps, in the case of a few…](https://sms4smile.com/quotes/jeffrey-r-holland/the-world-around-us-is-an-increasingly-hostile-and-sinful-place/) [Jeffrey R. Holland](https://sms4smile.com/quotes/author/jeffrey-r-holland/) > ['Inequality' has become the political theme/slogan of our time in both Europe and the U.S., yet political leaders do not even bother to consider…](https://sms4smile.com/quotes/paul-singer/inequality-has-become-the-political-theme-slogan-of-our-time-in-both/) [Paul Singer](https://sms4smile.com/quotes/author/paul-singer/) > [With those who are willing to join, let us cooperate to reduce the burden of arms, to strengthen the structure of peace, to lift…](https://sms4smile.com/quotes/richard-m-nixon/with-those-who-are-willing-to-join-let-us-cooperate-to-reduce-the/) [Richard M. Nixon](https://sms4smile.com/quotes/author/richard-m-nixon/) > [“What a burden it must be to know all the terrible things you've done and support it with arms unfit to carry it all.”](https://sms4smile.com/quotes/k-weikel/what-a-burden-it-must-be-to-know-all-the-terrible-things-you-ve-done/) [K. Weikel](https://sms4smile.com/quotes/author/k-weikel/) > [And that, in a way, was the burden of being a philosopher: one knew what one had to do, but it was so often…](https://sms4smile.com/quotes/alexander-mccall-smith/and-that-in-a-way-was-the-burden-of-being-a-philosopher-one-knew-what/) [Alexander McCall Smith](https://sms4smile.com/quotes/author/alexander-mccall-smith/) > [Wherever I am, I see the yoke on women in some form or another. On some it sits easy for they are but beasts…](https://sms4smile.com/quotes/abby-may-alcott/wherever-i-am-i-see-the-yoke-on-women-in-some-form-or-another-on-some/) [Abby May Alcott](https://sms4smile.com/quotes/author/abby-may-alcott/) > [It's a burden trying to keep a secret. It's hard. It probably takes more out of you trying to hold it and keep it…](https://sms4smile.com/quotes/magic-johnson/it-s-a-burden-trying-to-keep-a-secret-it-s-hard-it-probably-takes/) [Magic Johnson](https://sms4smile.com/quotes/author/magic-johnson/) > [I've always liked artists like Chris Burden, who would take performances, put them in galleries, and then do things that were on the edge.](https://sms4smile.com/quotes/david-blaine/i-ve-always-liked-artists-like-chris-burden-who-would-take/) [David Blaine](https://sms4smile.com/quotes/author/david-blaine/) > [Our office...subjects us to great burdens and labors, dangers and temptations, with little reward or gratitude from the world. But Christ himself will be…](https://sms4smile.com/quotes/martin-luther/our-office-subjects-us-to-great-burdens-and-labors-dangers-and/) [Martin Luther](https://sms4smile.com/quotes/author/martin-luther/) > [The debt immense of endless gratitude, So burthensome, still paying, still to owe; Forgetful what from him I still receivd, And understood not that…](https://sms4smile.com/quotes/john-milton/the-debt-immense-of-endless-gratitude-so-burthensome-still-paying/) [John Milton](https://sms4smile.com/quotes/author/john-milton/) [Browse all 2,567 Burden quotes ](https://sms4smile.com/quotes/about/burden/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Monetary policy has less room to maneuver when interest rates are close to zero, while expansionary fiscal policy is likely both more effective and less costly in terms of increased debt burden when interest rates are pinned at low levels.", "creator": { "@type": "Person", "name": "Ben Bernanke" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/ben-bernanke/monetary-policy-has-less-room-to-maneuver-when-interest-rates-are/", "about": { "@type": "Thing", "name": "Burden" }, "@id": "https://sms4smile.com/quotes/ben-bernanke/monetary-policy-has-less-room-to-maneuver-when-interest-rates-are/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/652/ben-bernanke-1388_burden_monetary-policy-has-less-room-to-maneuve_1271294.png", "contentUrl": "https://sms4smile.com/quotes/i/652/ben-bernanke-1388_burden_monetary-policy-has-less-room-to-maneuve_1271294.png", "url": "https://sms4smile.com/quotes/i/652/ben-bernanke-1388_burden_monetary-policy-has-less-room-to-maneuve_1271294.png", "width": 1080, "height": 1080, "caption": "“Monetary policy has less room to maneuver when interest rates are close to zero, while expansionary fiscal…” — Ben Bernanke", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Ben Bernanke", "item": "https://sms4smile.com/quotes/author/ben-bernanke/" }, { "@type": "ListItem", "position": 4, "name": "Monetary policy has less room to...", "item": "https://sms4smile.com/quotes/ben-bernanke/monetary-policy-has-less-room-to-maneuver-when-interest-rates-are/" } ], "@id": "https://sms4smile.com/quotes/ben-bernanke/monetary-policy-has-less-room-to-maneuver-when-interest-rates-are/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```