Chicago Fed President Charles Evans insists that the Fed must take action now to stimulate the economy. He warned that no action could lead to similar results as the 1930's recession, which resulted in permanent economic growth impairment as the unemployed lose skill value and businesses choose not to invest. He stressed monetary easing to keep interest rates low as essential towards encouraging business investments, noting that the major problem seems to be that of liquidity. It is important to note that unlike today, in the 1930's recession the FED had much less tools available to them, as monetary policy was limited to adherence to the gold standard.
http://news.yahoo.com/fed-must-act-now-boost-economy-evans-says-171135302.html
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