Something I would note is that some kind of legislative action with regard to the long-term deficit would be helpful in making the case here. The best argument I can see on the merits for monetary policy caution is fear that in the context of high projected long-term deficits there may be some kind of crisis of confidence tipping point lurking around the corner. If I were on the FOMC that would strike me as an unduly speculative reason to inflict massive unnecessary suffering on millions of unemployed and underemployed people. But it’s not an irrational consideration. In an ideal world you would see three-fold motion toward a bigger short-term deficit, a more aggressive monetary policy stance, and credible long-term deficit-reduction measures.