On a related note Matt Yglesias responded to Krugman's column today by staking out an admittedly optimistic scenario,
The difference between this situation and the situation with Congress and fiscal policy—and the reason I’m not necessarily as pessimistic as Krugman—is that there is a tractable path forward for improving monetary policy. Congress is only going to become more hostile to fiscal stimulus, but Barack Obama’s two appointments to the Federal Reserve Board of Governors are going to get confirmed one of these days and perhaps they’ll shift the median vote on the Open Market Committee in a better direction. If they don’t, we’re in big trouble. But they might. The puzzling thing is that both the White House and the Congressional leadership have been so lackadaisical about getting this done.I think the fact that Obama and Congressional leadership have been so lackadaisical with these nominations is pretty good evidence that there's no agenda for improved monetary policy forthcoming. The inaction from all parties just reinforces Krugman's thesis that our policy makers do not feel any urgency to address our 9.5% unemployment rate.