Federal Reserve programs during the recent financial crisis sought to provide liquidity to individual firms or industries. An interesting additional question is whether the aggregate amount of liquidity in the economy was appropriate before and during the recent financial crisis.

Permanent increases in the monetary base foreshadow eventual increases in inflation that can increase, rather than reduce, unemployment.

Current excess reserves could create a massive increase in the money supply if banks significantly increase their lending or investing.

The FOMC’s two-pronged approach involves a potential conflict: forward guidance assumes a high degree of substitutability across the maturity structure, while quantitative easing assumes a low degree.

Greater transparency is a means to better synchronize the public with policymakers and minimize the risks of undesirable economic outcomes.

On balance, the figure suggests that structural unemployment during economic downturns has increased since 1991.

Policymakers should not think of price stability and economic stability as competing objectives but as complements - the best way to achieve the latter is to be firmly committed to achieving the former.

It's hard to make a firm prediction as to when the Fed will raise interest rates.