The way monetary policy is implemented dates from the 1930s when banks' main business was lending money to businesses and people to build stuff. That money went directly to the hands of people who used it to buy tangible goods and real services. Since the repeal of Glass-Steagall in in the '80s, banks and financial institutions have started using money creatively to invest in other financial products. They realized that the best return on investment is actually, investing. So now whenever the Fed loosens monetary policy, we have more money chasing the same financial instruments. As a result, we see inflating stock prices (bubbles) but no inflation in the real world. Furthermore, if this pattern existed when Jimmy Stewart played his role in 'It's a Wonderful Life', we would still be in the same depression with poverty, disease and scarcity ravaging the nation. In fact, we are headed that way as our infrastructure ages and fails and we continue to outsource jobs that could be done by the unemployed here in the US.

The solution is to make a law that requires money from financial gains(capital gain, interest income, etc)only spendable on real goods and services. In other words, we need two kinds of money. Real money that comes from profits of operations invoilving tangible goods and services, and 'another kind of money' that comes from financial gains. This other kind of money could be tax free (no capital gains, no income tax, etc) but would be restricted to the purchase of real goods and the employment of people in non-financial service sectors.