Friday, February 20, 2015

Old Keynesians on Monetary Offset of Fiscal Policy

This is an ultra pointless "someone is wrong on the internet" post. I think I read somewhere the suggestion that Keynesians had to be told by market monetarists that fiscal stimulus can (at least usually) be offset by monetary policy. I think Keynesians have made this point for a while. Here I cut and paste from Samuelson and Solow (1960) "Analytic Aspects of Anti-Inflation Policy" pdf warning also known as the Phillips curve paper.

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