Stimulating growth during a recession weaknesses
-Sometimes, when a nation is stuck in a recession, investors will be reluctant to borrow money despite lower interest rates while consumers will be more willing to save their money rather than spending it. This can create a lingering recession.-Although monetary policy is fast to implement, it may take time to show signs of improvement in the economy depending on the elasticity of demand in the country.-Changing demand elasticities can also be a weakness of monetary policy as these changes could cause unexpected fluctuations in the rGDP.