The Great Recession was the most serious economic downturn in
U.S. history since the Great Depression. The recession began in
December 2007. Interest rates at the time were very low, close to
zero. Despite the American Recovery and Reinvestment Act of 2009, a
nearly $800 billion fiscal stimulus and an expansionary monetary
policy, the economy is only now getting back to normal in 2015. In
retrospect, what set of macro policies, if anything, should we have
conducted to achieve a...