Saturday, October 29, 2011

Dear Ben: It’s Time for Your Volcker Moment by Christina Romer

Wow, I remember DeLong writing this back on the 7th.
Let me be the first to say that I really, really wish the Federal Reserve would pull a Paul Volcker--would change its operating procedures--and announce that it will buy as many risky and long-duration assets for cash as it needs to in order to push market expectations of nominal GDP five years hence back to its pre-2008 trend level of $18 trillion/year.
Evans and Rosengren can quote from the piece and wave the physical New York Times about at next week's FOMC meeting.

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