Federal Reserve

Good description of the consequences of inflation.

"Artificial booms entail a turbocharging of whatever else is going on at the time. The dot-com crisis of the 1990s occurred because a credit expansion took place during a time when technological innovations associated with the digital revolutions created a strong demand for investment funds in that sector. The housing crisis in 2008 occurred because a credit expansion took place during a time when the federal government was pushing hard for increased home ownership for low-income families. We understandably identify these different cyclical episodes (the dot-com crisis, the housing crisis) with “what was going on at the time.” The common denominator, however, is the Fed’s propensity to expand credit. (emphasis added) "

I like the turbocharging metaphor. Regarding the current situation:

"Recovery most likely would have come quicker, with less long–run harm, if policy had been less active, even, perhaps if nothing had been done. As pointed out in the Wall Street Journal “Review and Outlook” of March 6, 2009, “Recessions don't last forever, but bad policies can prolong the pain.”"

Prolong it it has.