Shiller writes in his turn at the NYT:
THE fight over the debt ceiling has deflected attention from the serious problems of fixing the economy and finding jobs for the 14 million unemployed. Worse, it has created strong negative feelings about fiscal policy, just when other policy measures seem incapable of restoring economic health.
By “other policy measures”, read “Monetary Policy”. Unfortunately long ago inflation was diagnosed as the #1 problem. It quickly became an obsession that has reaped much harm on the economy, being responsible for the depth and breadth of the ongoing “not so little depression”.
The remedy proposed was fiscal stimulus, which is full of undesirable “collateral effects”. So now no “policy” can do any good. “Time”, “do nothing” and “stop government intervening” are the only possibilities!