[Diana in Wisconsin]

“It immediately raises issues of basic logic, as how can the rate at which employment and inflation normalize be less than zero when nominal rates are constrained by a zero lower bound? We must destroy money to get inflation?”

Either that or WWIII. Choose wisely, Grasshopper! :)

[expat_panama]

the rate at which employment and inflation normalize

That's been a big part of the problem, this idea that there is some rate were we can have " employment and inflation normalize ".  Bck in Niixon's time some moreon took the numbers from the 1960's and it ended up setting policy big-time:

It failed miserably (remember when Carter's 'stagflaion' was supposed to not have been able to happen?) and this is how inflation and employment eventually did work out over the long run:

Since then all kinds of eggheads have gotten rich 'explaining' how it really works but my take is there is no conncection  between inflation and employment --and that the Fed does nothing for jobs.