An article in a recent issue of the Journal of Finance states, “If fiscal policy is to be developed into a more precise art, if not a science, then it is crucial to be able to pinpoint more accurately the timing and the extent of impact of fiscal measures.”¹

The purpose of this article is to point out that the present time provides an important example of the need to understand the timing of the economic impact of fiscal measures. Moreover, an improved understanding may, it will be argued, lead to the conclusion that the inflationary impact of the January 1966 Budget submission has been underestimated and that fiscal policy measures may need to be modified substantially.