But monetary policy used to offset recession is often characterized as “trying to push with a string.” Making available money at low interest rates does not guarantee that banks will lend more or that businesses and individuals will borrow more. Credit may remain “frozen” if banks and other lenders have lost confidence in the ability of businesses and individuals to repay loans. It is then advised that only fiscal policy—government increases in spending, reductions in taxes, and
increases in deficits~can counter an especially deep recession.