Here are the six myths Johnson addresses:
Myth 1: The Federal Reserve has followed a highly expansionary monetary policy since August, 2008.
Myth 2: Recoveries from recessions triggered by financial crises are necessarily low.
Myth 3: Monetary policy becomes ineffective when short-term interest rates fall close to zero.
Myth 4: The greater the indebtedness incurred during growth years, the larger the subsequent need for debt reduction and the greater the downturn.
Myth 5: When money policy breaks down there is a plausible case for a fiscal response.
Myth 6: The rising prices of food and other commodities are evidence of expansionary policy and inflationary pressure.
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This post originally appeared at Macro and Other Market Musings and is reproduced with permission.