Friday, December 21, 2012

would lucas call a counter cyclical "earned social didivend" system monetary policy ?

i guess if the program was explicitly monetized

maybe the fed directly bought the issued ear marked debt
it would look like  just " a   fairness just desserts regulated"
           fed  helicopter drop

but of course the FOMC
 can off set or accomodated  any net new issue by the treasury
 simply by
  a purchasing program or selling program
of any  t issued paper
that the fed deems  roughly equivalent



 

     or ....you know ...whatever !

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the key is a fed hog tied to treasury actions by a clear response imperative