“With conventional monetary policy having reached its limit, any further policy stimulus requires a different set of tools.” ~ Ben Bernanke, April 3. I have this mental image of Bernanke and a dozen other Ph.D.-holding economists laboring over a car. Its hood is up. It is stalled at the side of the road. It is about an hour from Yuma, Arizona, the fan belt capital of the world. Bernanke has a tool kit next to him. It is filled with brand-new metric tools. He is working on a used Plymouth. The problem is, the car they are working on is … Continue reading The Emperor’s New Tools