I see in one of his papers he writes:
We distinguish between quantitative easing in the strict sense and targeted asset purchases by a central bank, and argue that while the former is likely be ineffective at all times, the latter dimension of policy can be effective when financial markets are sufficiently disrupted.I have a few problems with this. First is that Quantitative easing is usually defined as targeted asset purchases by a central bank, of assets other than short-term Treasuries. Second, that "quantitative easing ... "is likely be ineffective at all times". (I wish I could get away with such grammar lapses in my Abstract for papers I submit...) In any case, he's arguing that even if the Fed creates trillions of dollars out of thin air and monetizes the entire US debt, that it will have no impact on inflation, gdp, or other economic variables. However, "targeted asset purchases of non-liquid assets", such as MBS, are likely to help.
I'd say, if your model is telling you this, then you need a different model.
Nevertheless, patently ridiculous or not, this paper be gettin' published at the AEJ.