"One of the great mysteries of this recession is how the Fed has been able to get away with doing “the wrong thing” for three years in a row. The BOJ would often claim to be unable to boost NGDP. It was wrong, but the explanation sort of made logical sense. But Bernanke could never make that claim, as his academic research showed the Japanese explanation was preposterous. For instance, why did the BOJ repeatedly tighten monetary policy in the 2000s?
Of course the Fed never claimed to be out of ammo; indeed they have argued the exact opposite. This makes the Fed’s public relations success an even bigger mystery. Why have they gotten away with this stance?"
Read his piece in National Affairs, too. Then, go occupy the Board of Governors and demand adequate monetary policy. It's the Fed's fault. And don't blame Wall Street for lining up at the trough when Treasury and the Fed offered them conditions-free life lines. That was also arguably the Fed's fault. Demand the Fed adopt an NGDP growth rate target and use its unspent ammo. The whole world is watching.