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Today's Must-Must-Read: Alice Rivlin: Thoughts about Monetary and Fiscal Policy in a Post-Inflation World - Washington Center for Equitable Growth
(1) We have to recognize that the main job of central banks is avoiding financial crisis. (2) We will have to get used to central banks operating at quite low interest rates much of the time and managing big balance sheets without apologies. (3) We have to rehabilitate [expansionary] budget policy to make it useable again and move to a sustainable debt track at the same time. (4) We have to find constitutional ways of reducing the power of big money in politics and economic policy—or change the Constitution…