QE on its own is just not enough

In monetary policy, you shouldn’t meddle too deeply in things you cannot control.

Aggressive monetary policy instruments such as quantitative easing cede almost complete control to the markets and once initiated, can be difficult to control. Look at Japan – QE was initiated in Japan in the 1990s and for almost the past two decades the central bank has offered near zero interest rates, but is in a seemingly inescapable deflationary cycle.

There ...