Our modern monetary system was designed in the 20th century to smooth out the frequent and short-term ups and downs of t

[answerhappygod]

Our modern monetary system was designed in the 20th century to
smooth out the frequent and short-term ups and downs of the
business cycle experienced in the late 19th century. However, the
constant expansion of Aggregate Demand since then has led to a
larger long-term economic cycle, which is very hard to counteract
with standard monetary and fiscal policy measures.
Using the discussion from Ray Dalio’s video, explain three
things: (1) the role of credit in the modern monetary system, (2)
why standard monetary and fiscal policy measures won’t always work
to offset a long-term economic cycle downturn and (3) what
controversial tool must be used to achieved a “beautiful
deleveraging” when a long-term economic cycle turns to
contraction