The Fed

If Krugman had his way, government agencies would have unlimited powers to control the economy, since government agents know better than everyone else.

It is during times of crisis like this, when government feels the greatest need to control, that sound economics is most needed.

The empirical evidence is clear: the Fed is pursuing an expansionist monetary policy — and the economic benefits have been disappointing at best.

The central bank is unlikely to follow rules like the Taylor Rule because they are fundamentally political organizations with their own agendas.