The progressive issue many progressives don't seem to like

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3. Real world

I would love a congress that would do any of that but we don't have one at the moment.

So there is no fiscal relief on the horizon.

I did not mean to suggest fiscal policy isn't key, merely leaving it aside as practically unlikely.

That leaves monetary policy, and monetary policy cannot do anything more than it is doing currently unless some inflation develops.

Ideally, fiscal and monetary policy would operate in tandem.

Now, one can say that inflation developing is no more likely than Republicans providing fiscal stimulus, and that may be right. But if it does develop and the Fed keeps rates unchanged it would be powerfully stimulative. (When Bernanke keeps saying rates will stay low through 2014 he is essentially promising investors to not raise rates if inflation develops, which is the only way monetary policy can gain traction.)