Rather than continuing to engage in quantitative easing, I urge you to instead give public transit authorities access to a special long-term discount window, through which they can borrow capital to finance infrastucture projects at a below-zero interest rate (which would monetize a portion of the infrastucture's construction cost).

Such a lending program would allow the Federal Reserve to mobilize resources directly towards investment with an immediate impact on job creation. Our current monetary policy has become ineffective in the context of globally integrated financial markets in which capital outflows have fueled extraordinary foreign direct investment abroad, using essentially free capital from the Federal Reserve, while current monetary policy leaves our domestic economy stagnant.

Relative to continued quantitative easing, an infrastructure financing facility will have a lesser risk of price inflation and would not devalue the dollar as significantly or as rapidly. It would also inspire investor confidence at a time when a volatile political environment inhibits progress on even formulating a coherent economic or fiscal policy.

The Federal Reserve already gives essentially free lending capital to major financial institutions. Giving public transit authorities access to partically monetized loans would usher in an era of massive infrstucture investment at a time when it is severly lacking.

It would give the Federal Reserve a new tool that could influence the level of public sector infrastructure investment overtime with slight adjustments in long term lending rates (or, more accurately, adjustments in the rate at which that loan is monitized) . With near-zero (or below zero) interest rates, investments in light rapid rail and regional rail systems become plausible -- and running an operating profit, for public transit authorities, is within reach.

Without such a program, investment in infrastucture  will not happen. Public financing is politically implausable, and private financing is not economical. New infrastructure spending will only happen if constuction costs are monetized.

But at least, unlike current monetary polcies that give multi-national financial institutions essentially free US dollars to invest abroad, this approach would actually have an impact on job creation.