http://reason.com/archives/2010/10/28/are-we-all-friedmanites-now
Friedman would probably object to most of what Bernake has done thus far.
However, this is what you get for advocating socialism, in any amount. A bunch of statists using your reputation as a free marketeer to advocate for the most massive government monetary intervention in the history of the mankind.
Where oh where have the Monetarists gone? Where oh where can they be?
They have been swallowed up by the crude Keynesians. And if they would have prescribed the creation of a financial bomb that Alan and Ben have created then they and their theory are just crap. These deflations are market reactions to previous inflation. So more inflation is not going to help.
Mises was correct. That is to fear the boom where the malinvestments take place. Waiting for the bust is futile. Now the bust can be quick and painful or long drawn out and slightly less painful.
At some point common sense will prevail or we will make ourselves destitute. Common sense says that if you dig a hole and jump in then the first thing to do to get out is to STOP DIGGING!!! Or a better analogy is that why not paddle to the shore prior to going over the rapid.