Bryan Caplan explains what he learned from the crisis.
He explains that the experince of the Great Moderation had persuaded him that the Fed had learned its lesson and was doing a tolerable job. Fundamental monetary reform was on his back burner. The Great Recession has caused him to lose confidence in the Fed.
In my view, we have learned that manipulating the federal funds rate to keep the inflation rate rising 2 percent from its current level, wherever that happens to be, leads to very bad recessions. But, the Fed doesn't seem to want to learn that lesson.
It is time for fundamental monetary reform.