Scott Sumner with some thoughts on what can be done by the Fed, short of his preferred NGDP level targeting (further explanation of each at the link):
1. Reduce interest on reserves. This one should be a no-brainer.
2. Price level targeting, at the rate of the implied Fed target of 2%.
3. A 5% NGDP growth target.
The latter two, of course, meaning, "INFLATION!!!" And the first one I suppose is, "weakening the banks!!"
