Monetary easing (ME) policy should be used as a last resort, not as a first resort.

Central bankers are abusing the monetary easing policy nowadays and using it as a first resort to solve their economic problems.

Basically, the monetary easing policy is used to increase the money supply in the banking and financial system with the ensuing outcome to depreciate the currency and cause inflation.  Therefore, it will become an invisible tax (higher inflation) on ordinary consumers who don't borrow the "new" money with lower interest rates to invest.

The monetary easing policy should be used as a last resort because it is supposed to be implemented when the economic projection is very bleak.  If the economic projection is very bleak, business investments and consumer spendings must be encouraged.  The business owners are able to borrow the new money at lower interest rates for their investments and consumers' propensity to spend will also be higher because of higher inflation expectations.

However, the ME policy is a double-edged sword because when the economic projection is very bleak, the job security is also expected to be low and this may deter consumer spendings and consumers may end up saving more for rainy days.  Consequently, the ME policy will encourage more savings than spendings instead because it is signalling to the general public that the future economy is very weak.  For example, if the bank is adopting a ME policy of negative interest of -1%, how many people will borrow from the bank to buy a property even when the bank is paying the borrower an interest?  The borrower will be worried that he will lose his job anytime and won't buy a big-ticket item because taking on additional debt in a bad economic situation is a bad idea.

Therefore, the ME policy is to be used as a last resort since the outcome is uncertain.  When the economic situation is in dire straits, then the ME should be used and hope that the best outcome prevails.