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this pretty much explains why Bernanke is doing what he has been doing for the past 5 years, in a way that no politician would ever dare attempt. Part of it is dangerously misleading, because although it is true that monetary expansion is not inflationary in a liquidity trap, it is incredibly inflationary if/when the economy rebounds. So monetary expansion isn't any more destructive than lighting a fuse. Overall, this is a really good explanation of where the U.S. economy is now, but you can't draw too many conclusions from this, because the situation in Europe makes things more complicated.