Suppose you believe that the US economy needs increased Aggregate Demand, and needs looser monetary policy to accomplish that, and needs asset purchases by the Fed to accomplish that. (I believe those things, but am not going to argue them here). What sort of assets should the Fed buy?
I want to divide all assets into two classes: "pro-cyclical" assets and "counter-cyclical" assets. I think the Fed should buy pro-cyclical assets. I'm going to define them in a minute.