Kocher: To sum up: an aggressive demand stimulus plan can achieve its aggregate objectives if (but only if) the Fed does not tighten significantly in response to the program.
He has been concocting this plot whereby Congress and Janet do the careful waltz along a secret path, leaving eight years of baggage behind.
Not so. The Fed will be walking along the circular path of regulation costing for millions of tiny steps. Each step it has to sort out who pays for what regulation costs, but the costs change faster than Janet can dance.
The Fed is lost until helicopter time, then the Swamp marks to market, deletes debts and we spend ten years sorting out winners and losers. That is how Nixon and Roosevelt did it, and three or four administrations previous in American history. But, the technology improves each time we do this, and we get better at it.
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