(RECAP: Monetary policy in the U.S. and other developed countries “is reaching its limits,” but the Federal Reserve has not yet run out of responses to a potential slowdown, former Fed Chairman Ben Bernanke wrote Friday. In a blog post for the Brookings Institution, he argued a “balanced monetary-fiscal response” would better boost the economy than monetary tools alone. Bernanke assessed policy options for the Fed, saying negative interest rates hold “modest benefits” but are unlikely. Bernanke said the Fed could use forward guidance, or “talking down” longer-term rates while convincing markets that small-term rates will remain low. If economic weakness warranted a stronger response, the Fed may consider quantitative easing.)

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