Niall Ferguson, in his book "The Ascent of Money: A Financial History of the World," discusses the critical role of monetary policy in the economy. He argues that if monetary policy is poorly executed or lacks flexibility during significant downturns in asset values, it can exacerbate financial crises. Such ineptitude can convert what might be a temporary correction into a full-blown recession or even a prolonged depression.

This statement highlights the importance of timely and effective responses from monetary authorities. When asset prices fall sharply, appropriate monetary interventions can help stabilize the economy. Conversely, failure to adapt policies in response to economic signals can lead to deeper and more damaging economic downturns, illustrating the delicate balance between policy actions and economic vitality.