>Because it's the only effective lever of macroeconomic control that
>we have, given the Congress's... limited... ability to conduct
>discretionary fiscal policy in a timely fashion...
What's the state of thinking these days on the monetary transmission mechanism? Lately in the U.S. it seems to operate via effects on the stock market, the housing market, and psychololgy. Investment hasn't responded to the lowest interest rates in a generation.
Doug