NPR Tells Us That There Is Nothing that Congress and the Fed Can Do About the Weak Economy

Okay, that is just not true. Congress can do another big round of stimulus. It could mandate a reduction in the value of the dollar in order to boost net exports. Or it could push an aggressive work sharing program like the one that has led unemployment rate to fall below pre-recession levels in Germany.

The Fed could target a long-term interest rate. For example it can set a 1.0 percent target for the 5-year Treasury rate. Or it could target a higher rate of inflation, committing itself to t...