The major economic policy challenges facing the nation today - pick your favorites among the usual suspects of low public and household savings, concerns about educational quality and achievement, high and rising income inequality, the large imbalances between our social insurance commitments and resources - are not about monetary policy.

Most consequential choices involve shades of gray, and some fog is often useful in getting things done

Financial crises require governments.

The government can help, but we need to make this transition now to a recovery led by private investment.

The recognition that things that are not sustainable will eventually come to an end does not give us much of a guide to whether the transition will be calm or exciting.

Looking past the immediate crisis, a more resilient system must be built on stronger and better designed shock absorbers, both in the major institutions and in the infrastructure of the financial system.

Monetary policy itself cannot sensibly be directed at reducing imbalances.