The story of the American economy in the past eight years is one of tension between an aggressive "monetary" policy and a nonexistent "fiscal" policy.
Monetary policy has come from
Fiscal policy is a combination of reforming the corporate tax code and government spending on big projects that will pump money into the economy and create new jobs. With Republicans now in control of the White House and both houses of Congress, the years-long standoff may be broken.
Left-wing economist Paul Krugman has been
Trump could change all of this.
The first thing Trump mentioned in
"We are going to fix our inner cities, and rebuild our highways, bridges, tunnels, airports, schools, hospitals," he said. "We're going to rebuild our infrastructure, which will become, by the way, second to none. And we will put millions of our people to work as we rebuild it."
During the election, Trump promised to spend heavily on programs that would create untold numbers of jobs in...