The effectiveness of demand-stimulus policies is limited when they are kept in place for a long period, as can be seen today

Fiscal and monetary policies have been expansionary for a long period of time in OECD countries and in the world as a whole . Yet growth is clearly slowing in the OECD and globally , which shows the limited effectiveness of demand -stimulus policies when they are kept in place for a long period of time, and in particular when they continue to be conducted in a situation of near -full employment . This weak effectiveness of demand-stimulus policies probably stems from both: The appearance of supply-side constraints that curb growth; The fact that the effects of demand-stimulus policies are exhausted when these policies are kept in place for a very long period of time. This s hows that persevering with demand-stimulus policies late in the expansion period is both relatively ineffectual and reduces the capacity to use them in the future.