A severe problem that many economists have with the active use of monetary policy and fiscal policy to stabilize the economy is that, while those policies obviously work well in practice, they are not well understood on a theoretical level.

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Economists' concerns about the active use of monetary and fiscal policy often revolve around issues like timing, effectiveness, and potential long-term side effects (such as inflation from monetary policy or increased debt from fiscal policy), rather than a lack of theoretical understanding. The theoretical frameworks for both policies are well-established, but their practical application and outcomes can be unpredictable and subject to debate.

A Severe Problem That Many Economists Have with the Active