4. Of the criticisms, some are valid and some are not. Clearly, nobody who has looked at the evidence will think that unconventional monetary policy is inflationary. Inflation is low, and interest rates are rock bottom. Under normal conditions, this policy would be inflationary, but it is likely only going to be used in crisis times, when the normal predicative conditions do not hold. However, expansion of the Fed's balance sheet is risky. Certainly, if it needs to shrink its balance sheet this could prove contractionary -- timing of such moves needs to be spot on. The last complaint -- that unconventional monetary policy is not particularly effective -- is a legitimate criticism. Despite the massive efforts we have...

remains muted and unemployment stubbornly high. If a central bank is going to take these sorts of risks, it should be successful.
5. While there are those who feel that the Fed should undertake any effort to stabilize the economy, one must recognize as well that the Fed cannot do it all. There are structural issues in the economy, and the Fed should not undertake drastic actions in order to overcompensate for a lack for weak fiscal policy. The bottom line is that unconventional monetary policy may not be as bad as its shrillest critics make it out to be, but it has not been particularly effective either. A risky policy that doesn't work is just a bad idea.