Why Isn't the Federal Reserve Boosting Aggregate Demand Further?

Joe Gagnon:

Joseph E. Gagnon: Time for a Monetary Boost: In his testimony to the Congress this week, Fed Chairman Ben Bernanke left the door open to further monetary stimulus but made it clear that such action is not imminent. This reluctance to act may seem puzzling given the widespread view that the economic recovery is too weak.... The Federal Reserve's own forecast shows that it will take at least three or four years for employment to return to its long-run sustainable level. This...