Macroeconomic policy co-ordination lessons for Kenya

Forget the recent heat generated in Kenya between the two pillars of macro-policy (monetary and fiscal). It is inevitable and in the national interest that the two must be coordinated.

Among top policy insiders, practising economists and central bankers, a system of macroeconomic policy-making called the IS/LM (short run) and AS/AD (medium run) makes it essential and optimal to do so.