You get a very respectful link from Krugman, and, thus my congratulations. However, I am even more of a non-monetarist than he is, and I totally disagree with your reading of recent data.
a key lesson of recent years is that monetary policy overwhelms fiscal policy. Thus, from 2008-2009 when monetary policy was effectively tight the easing of fiscal policy didn't quite pack much of a punch. Similarly, in late 2010, early 2011 when there was not much fiscal stimulus, but some monetary policy easing under QE2 there was some improvement in the pace of recovery.
Notice how vague the claims are. He didn't type any numbers -- say GDP growth rates or employment growth rates.
I think your perception of macroeconmic events is not related to reality. After the ARRA there was the most rapid accelration of GDP growth over 2 quarters since 1980 and also the most rapid acceleration of GDP growth over 3 quarters. Rapidly declining employment turned into rapidly increasing employment (even ignoring the census).
After the fact estimates of the effects of the ARRA by experts (one of whom chaired the CEA and is biased) are similar to forecasts. Also monetary policy was (by now conventional standards) as loose as it can be, since the now conventional measure is the federal funds rate not growth of monetary aggregates.
Sure the general public considers the ARRA a failure, but that is because they don't compare it to a VAR forecast. The view that it worked as well as expected but was half the right size is absolutely consistent with the data. The public doesn't have the same view of QE2, because they haven't noticed it (frankly it is very hard to notice it).
Your claim about what happened after QE2 is similarly absolutely incomprehensible to me. I note the general view that a shift in monetary policy affects national income and product accounts after "long and variable lags" -- Milton Friedman. The general view is about 6 months after the shift. So standard views on when monetary policy should have an effect place the effect either in 2011 Q1 (very disappointing) or 2011 Q2 (in course). Note that 7 year real interest rates are almost exactly the same as they were when Bernanke first mentioned QE2 and higher than they were after the final announcement of what and how much would be bought.
Also you skipped 2008-9. There was a megahuge expansion of monetary base utterly unprecedented in US monetary history. M1 and M2 massively increased. GDP fell sharply. If one more were necessary, this was the utter final refutation of the quantity theory of money (which I consider to have been utterly finally refuted in the early 80s).
I don't see how anyone can have lived through the past 2 years and think that monetary policy trumps fiscal policy. I would have thought that the utterly overwhelming evidence that points the other way would have convinced everyone (maybe even Friedman himself). I really don't understand how anyone can still be a monetarist.
I didn't mean to be rude, but well whatever, I'll just let it hang out. To me monetarists are like Ptolemaic astronomers (note I have a lot of respect for Ptolemy http://bit.ly/lKt8bK). It fit the data for a while, but now we know that other models fit better.