Governments and central banks are now clearly determined to extend expansions: The absence of inflation enables them to succeed

In 2019, fiscal policy is expansionary in the United States, France, Italy (more generally in the euro zone excluding Germany and the Netherlands ) , Japan and China; monetary policy is expansionary in the United States, the euro zone, Japan and China. Although they have succeeded in generating full employment, governments and central banks want to extend the expansion, which is possible for central banks because of the absence of inflation. The result of this behaviour by governments and central banks is that growth is unlikely to fall below potential growth, and that we therefore will have a n across-the-board soft landing.