Brad DeLong submits:
Further to Martin Wolf’s article, Why it is right for central banks to keep printing:
The fact that fiscal contraction is expansionary when it is part of a package including substantial real exchange rate depreciation and substantial interest rate reductions by the central banks is something I have believed ever since I first started thinking about these issues. I was printing up color graphs to support that argument back in December 1992 so that Summers, Reich, Blinder, and Altman could make that argument to President-Elect Clinton.
