This must be the period of soul searching, with the Economist engaging upon multi-article exegeses on where mainstream macro went wrong [1], [2], [3]. Alternatively, I think this is a happy time for some economists outside the (perceived) mainstream, who can now chortle "I told you so". One recent example is by Mario Rizzo.

Alex’s Notes: The term “slippery slope” has been used quite a bit when it comes to analyst commentary on what the Federal Reserve (which by the way isn’t a government institution, contrary to what many believe) has been up to lately.

A little freedom here, a little sovereignty there, and before you know it, a person might just wake up to find them self enslaved.

I am reminded of a few comments by Thomas Jefferson:

“I sincerely believe… that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.” ~Letter to John Taylor, 1816

“If the American people ever allow private banks to control issue of their currency, first by inflation, then by deflation, the banks and the corporations that will grow up around them, will deprive the people of all