Now that the worst of the economic crisis appears to be over, policymakers the world over are considering their exit strategies.  As you say, tightening fiscal policy while keeping monetary policy loose is the favorite strategy, and the withdrawal of fiscal stimulus is the favorite exit route (“Exit, Followed by a Bear,” November 7, 2009).  But pitting John Maynard Keynes against David Ricardo in gauging the effect of the stimulus is rather unnecessary.  True, consumers will perceive a higher government deficit as a forewarning of future tax rises, and thus save a portion of the handouts they receive from the state, but the remaining portion will still be spent.  Also true, the higher the government deficit, the lower the multiplier effect of spending this portion, but it is not likely to become altogether ineffective.  Ricardo and Keynes would surely agree on this much, from which they would conclude that an excessive stimulus would not be wise.  Most important, they would argue that the stimulus should be withdrawn at this stage in the reasonable hope that the old bear would not appear again all too soon.