I agree it’s not worldwide. An alternative read is that Japan’s GDP in 2013 was ~5 trillion US dollars, and so there were trillions of dollars “at stake” in monetary policy, but that doesn’t mean that any particular good policy decision has an expected value in the trillions. If the total difference between good policy and typical policy is +1% GDP growth then these are billion dollar decisions, not trillion dollar decisions.
By contrast “trillions of euros of damage” is wrong (or hyperbole). The EU’s GDP is about 5x Japan’s but the ECB has stronger constraints on its actions, including its scope for quantitative easing. I expect those also to be billion dollar decisions in general.
I agree it’s not worldwide. An alternative read is that Japan’s GDP in 2013 was ~5 trillion US dollars, and so there were trillions of dollars “at stake” in monetary policy, but that doesn’t mean that any particular good policy decision has an expected value in the trillions. If the total difference between good policy and typical policy is +1% GDP growth then these are billion dollar decisions, not trillion dollar decisions.
By contrast “trillions of euros of damage” is wrong (or hyperbole). The EU’s GDP is about 5x Japan’s but the ECB has stronger constraints on its actions, including its scope for quantitative easing. I expect those also to be billion dollar decisions in general.