Guest Post at Miles Kimball's on Wallace Neutrality in Theory and Practice

University of Michigan economist Miles Kimball was kind enough to ask me to comment on a recent Twitter discussion he had with Berkeley economist Brad DeLong and Stony Brooke economist Noah Smith on Wallace neutrality. He was specifically concerned with how I would answer the question, Does Wallace neutrality result from (in theory) fiscal policy canceling out the Fed, or many private agents (the minnows) canceling out the Fed (the whale)? My answer, and more, is here.