However, the policy we are getting is closer and closer to what I have wanted. The Fed is standing pat behind QE2 and opening the door to “make up inflation” or state dependent level targeting, whatever you want to call it. That’s clearly a win.
Congress is engaging in helicopter drop like tactics, a payroll tax cut – though a woefully small one, more unemployment benefits and an extension of the Bush tax cuts for everyone.
This goes towards my ideal policy – a money financed increase in transfers to private citizens. All of it is smaller than I hoped and there is no official commitment that the Fed won’t take away the punch bowl. All in all you have to be happy with the direction things are going.
We just want more of the same. As a reference here are the slides I gave last week as a presentation to a Chamber of Commerce breakfast. Most of them below the fold.
That's his fold, not mine. Head on over and check it out. He has graphs! (I love graphs.)
What do you think?