Critics of quantitative easing have focused on two points: (1) it may be ineffective as noted in the previous question, and (2) if it is effective, then the resulting large monetary expansions will ultimately lead to inflation. what should the fed do over the coming years to keep inflation from getting out of control?

4. as christina romer discussed in her recent talk at reed, current fiscal policy faces a tightrope between the need for further stimulus and the need to restrain the rapid growth of government debt. indeed, the report of bipartisan national commission on fiscal responsibility and reform is to be (or was, depending on when you read this) released on december 1, 2010. given the constraints of deficit reduction and the need for further stimulus, what advice would you offer the incoming congress about fiscal policy?