This is an excellent and MUST READ article from Gavyn Davies, the respected macro-economist, writing in his FT blog. Check it out!
I sense that there will be increasing pressure for policy-makers to re-focus on fiscal policy options, as monetary policy switches to the back-seat. See my earlier blog citing the IMF‘s video entitled: The Evolving role of Fiscal Policy – IMF- YouTube. Personally, I remain optimistic that the Fed will not tighten monetary policy too quickly to choke off growth.