Macroeconomic control with non-identical control intervals

David Kendrick (1976) has pointed out that dynamic control schemes which economists have applied to macro-economic models generally rest on the stringent assumption that monetary and fiscal policy are executed with the same frequency. Kendrick observes: "The Federal Reserve Board can make monetary policy decisions fairly quickly. However, fiscal decisions are made by the President, but must then go to Congress, and back to the President. No control theory application has yet taken account of the difference in timing between the policy-making actions." This paper recognizes that agents having non-identical control intervals are involved in controlling the macro-economy and examines the role of monetary and fiscal policies in this context.