Nice clear thinking from Buffet. The ideas are very old, only the implementation is new.<p>First, the Fed's actions are a mix of fiscal and monetary stimulus. They are not different to Keynes' idea of fiscal stimulus, since they inject money into the economy in cases where even zero interest rates couldn't.<p>Second, in order for stimulus to work, it must convince people to make long term decisions (such as building physical factories, starting companies, buying durable goods, etc.) and therefore the Fed must commit to a long term stimulus plan. Buffet clearly outlines the Fed's approach to making this commitment.<p>I know a lot of people on HN are deeply suspicious of mainstream macroeconomics, and that is understandable since even with my training I can't really verify that people in the field are doing things right. However, I will say that there are a large number of countries in the world that are big enough to have their independent macroeconomic policy. So far, no country I'm aware of has chosen not to use the above two principles, which together can be taken as a summary of neo-Keynsian economics. If there really some better way out there I think that some country would have tried it.