Quote from joneog:
Agreed, except for your point on monetary policy and deflation. The only way they could be more accomodative is dropping the rate on deposits at the fed to 0. Even then banks probably just buy bills, pulling the short end of the curve down to 0 to limit duration risk, since there isn't enough high-quality credit demand. Trying to drive up inflation expecations isn't working; non-discretionary prices are rising much faster than incomes.
It's not a money/credit supply problem. It's a demand problem. The fed can't fix that.
lol very true. As usual a lot of that's over my head though
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