A Smarter Bailout Could Have Shortened the Recession

We are, as they say, live:

A Smarter Bailout Could Have Shortened the Recession

Policy did not respond optimally to our "balance sheet recession." Though I didn't talk about this in the column, it's looking like we have a very slow recovery ahead of us, so it's not too late to do something about this and speed the recovery. We won't do anything of course, the current political environment won't allow it, but hopefully we can still learn something and improve policy the next time a balance sheet recession hits the economy.