[eyeamok]

If the current recession is the result of credit exhaustion, i.e. companies and households cannot afford to borrow more or don't want to borrow more, increasing liquidity won't be effective.

Only in America do people believe you can Borrow your way to Prosperity, it never works out well in the long run.

[SeekAndFind]

RE: If the current recession is the result of credit exhaustion

WHAT CURRENT RECESSION?

[buwaya]

Not only in America.
China and Europe do the same, if not more so.
And any number of states in recent times, plenty of them in the Third World. Its a constant theme, of borrowing heavily for “development”, and then going broke and defaulting or threatening to.
It was a thing back in the 19th century. Mexico and Egypt, just to cite two examples, lost their independence as a result, ultimately, of creditors trying to get their money back.