By William J. Luther
There is little doubt that the Federal Reserve's failure to stabilize nominal spending in 2008 and 2009 resulted in a severe economic contraction. Production slumped and the unemployment rate climbed to 10 percent. But, in recent years, some have claimed that monetary policy remained tight thereafter, slowing down what would otherwise have been a rather speedy recovery.
David Beckworth provides a clear statement. He argues that monetary policy has been "too tight … for the better part of a decade." The Fed has failed to hit its 2 percent inflation