But the verdict is still out on whether central banks should be buying assets,as they do now,or instead tie up with goverments to spend it on 'real' goods,known as 'people's QE;as a chard said during a lecture as the cass Business School.
"There is clearly someting else you can do if you get to zero (inflation)and still want to increase spending. You can buy goods.
"Which one should you choose? We haven't asked the question in the crisis but we should", he said.
Blanchard said that this does not mean central banks would buy goods directly. Rather, governments can increase their fiscal deficits by spending on infrastructure projects. Central banks can then buy this debt with newly created money.
He also stressed that these fiscal deficits should be"a certain size and not more".