The Keynesians in general argued that the easy fiscal policy was going to dominate and therefore predicted continued rapid expansion in 1967. The monetarists argued that monetary policy would dominate, and so it turned out. There was a definite slowing down in the rate of growth of economic activity in the first half of 1967, following the tight money policy of When, in early 1967, the Federal Reserve reversed its policy and started to print money like mad, about six or nine months later, after the usual lag, income recovered and a rapid expansion in economic activity followed. Quite clearly, monetary policy had dominated fiscal policy in that encounter.