Frustrated by “the suffering of real families,” President Obama’s former top economic adviser recently called for action: “If I have a complaint about policy these days, it’s that we’re not doing enough,” Christina Romer said in a speech last month at Vanderbilt University. “I think there are tools we have tools we have that we can use, and I think it’s shameful that we’re not using them.”
Romer also wants more action from the Fed, which has already taken extraordinary measures to boost the economy and financial markets.
“What I’d like is for the Fed to come at the unemployment problem with the same passion as when the financial system was in such distress,” she says.
It’s a “mistake” for the Fed to end QE2 in June as planned, Romer continues. “The evidence is it’s been very effective. I don’t understand why we’d be dialing back that tool.”