Plosser on Fed policy

[Dave Backus @ NYU]

Nice Bloomberg interview with Charles Plosser, president of the Philly
Fed and frequent visitor to NYU Stern. He's gotten some attention
lately for his dissenting vote on the last FOMC policy decision. This
may be interesting only to Fed watchers, but I thought he made some
useful points in a nice nontechnical way:

* There’s a limit to what the Fed can do to solve our current economic
problems.
* Current economic conditions not as bad as many think.
* The way to solve the housing problem is to let prices fall till the
market clears.
* It's important for the Fed to be clear what it's doing.

Link: http://www.youtube.com/watch?v=rBqaZasM1ao
From Steve Williamson: http://newmonetarism.blogspot.com/2011/08/plosser-elaboration.html