The size of monetary stimulus vs. the length of monetary stimulus

posted by
August 30, 2011
by Bryan Caplan  
Posted in Commentary

"Even in a dinosaur Keynesian framework, Tyler's dead-on. There's a multiplier, but the entire effect of stimulus on demand -- direct plus indirect -- vanishes as soon as the stimulus runs out. Question: Is this size versus length distinction relevant for monetary policy, too? The answer initially appears to be yes." (08/30/11)  

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