Brad DeLong points us to David Glasner on John Taylor; I don’t think I need to add to the pileon. But I do think Glasner misses a point when he says that
"the quantity of money, unlike the Fed Funds rate, is not an instrument under the direct control of the Fed."
Actually, under current conditions — in a liquidity trap — it’s not even under the indirect control of the Fed.
The Federal Reserve is one of the most-written-about topics on NV... and perhaps all the interwebs. It is the focus of so many nutzoid paranoid conspiracy theories that there are probably several sites dedicated to nothing else.
Amidst the convoluted nonsense that passes for knowledge amongst our tin-foil-hat "economists", the magical powers of the Fed to create money are probably foremost.
As usual... our tin-foil-hat "economists" have no idea what they are talking about...