Since the publication of Keynes' "General Theory of Employment, Interest, and Money" in 1936 many new ideas and …

(real or deficit). Under monetary and fiscal policy coordination, the real spending multiplier is 3.4 and the deficit … spending multiplier is 3.8. However, when there is no policy coordination, that is, when the central bank is "goal independent …," the real spending multiplier is unchanged but the deficit spending multiplier is zero. Coordination failure may explain …