Fed's Hoenig notes monetary policy's limits

Thomas Hoenig, the president of the Kansas City Federal Reserve, said he has been struck by the heavy burden placed on monetary policy to cope with the current crisis and its potential spillover effects.

"We should look to fiscal policy to play a more important role," said Hoenig. "In contrast to monetary policy, it can work effectively even when the financial system is impaired and its effects are felt more broadly across the economy."

Hoenig explained that rather than overemphasising the role of

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