Why Can't Anybody Play This Game? Macroeconomic Policy Department

Jackie Calmes reports on the White House's line wobble...

Since the summer of 2008, at least, the correct line on economic policy has been:

The economy suffers from a shortfall of aggregate demand
The Federal Reserve cannot compensate using its normal tools
We therefore need extra stimulative policies--and since we really do not know which ones will be most effective, we need to be trying everything: qualitative easing, other non-standard expansionary monetary policies, stimulative...