It is difficult to see how theUnited Statescan avoid a prolonged recession once the stimulatory effect of the present tax rebate program abates later in the year.

Francoise Hollande’s defeat of Americain Nicolas Sarkozy does matter when it comes to foreign policy because Sarkozy has arguably been the most alliance-friendly French leader in decades—perhaps ever. 

Financial crises, and their aftermaths, can pose greater challenges to central bank independence than the more traditional pain associated with combating inflation.

Central banks would be ill advised to look solely in the rearview mirror when assessing the inflationary outlook.

Nothing in the history of the Fed suggests that it has or ever will have the capability of being consistently wise.

Judging from the response to the Fed's three-year battle against systemic financial collapse and the risk of deflation, it is difficult to escape the conclusion that financial crises and their aftermaths can pose greater challenges to central bank independence than the more traditional pain associated with combating inflation.

A combination of factors makes for a highly problematic outlook for the global economy over the coming year.

Nobel laureate Milton Friedman's main message for central banks was to maintain a monetary rule that kept the growth of the money supply constant, and would certainly not favor the Federal Reserve's current inflationary plan.