Regarding the cheap money, isn't it better for markets to decide the interest rate rather than the Fed? Are there any examples in history where a country left the interest rate to be set by the market.
There's an increased focus on affecting the medium-term or longer-term interest rates through the purchase of toxic assets like mortgage backed securities.
Not sure if that answers or clarifies anything though. I can say more if you're interested.
Monetarists believe in controlling the money supply rather than interest rate. Is that what you're looking for?