Similarly, government spending should fluctuate to lessen business cycles. For example, when the country is in a slow period, government spending can be used to get the economy going again. Not very well. This would lead to reduced government spending at the very time when the spending should increase. One point that can not be overlooked is that of expectations.
Expectations drive everything.
If people believe the Fed will control inflation, the investment decisions will be vastly different than if the Fed has lost the confidence of the people. Once inflation is here, it is too late.