As I understand DeL, it's not that the Fisc cannot affect output; it's that the Fed can always out-maneuver the Fisc, so in principle the Fed is in charge, though if it so chose, it could coordinate with the Fisc. Or in a different political context, the Fed could be brought to heel, we should live so long.
In the old elementary textbooks, Fisc and Fed were treated as if they acted independently -- comparative statics and all. mbs -----Original Message----- From: PEN-L list [mailto:[EMAIL PROTECTED] On Behalf Of Daniel Davies Sent: Thursday, August 03, 2006 3:16 PM To: [email protected] Subject: Re: A gloomy Brad DeLong y
