"I don't believe you can permanently expand the economy just by running expansionary policies," he said.

The main cause of the gap is considered to be expansionary monetary policies carried out by the government.

The expansionary policy of nearly all governments resulted from three main factors.

Many economists argue that Europe is already following an expansionary monetary policy and does not need to change course.

If the debt was a manageable size, of course it would make sense to blow a bit more money on expansionary policy.

That's because the events of Sept. 11 have led to more expansionary policies, on both the monetary and the fiscal side.

An expansionary fiscal policy financed by an increased money supply.

Some economists, though by no means all, still believe expansionary policy is worth a try.

Germany and Japan have refused to pursue more expansionary economic policies for two reasons.

In turn, an expansionary monetary policy is one that seeks to increase the size of the money supply.