It seems to me that the first thing Republicans need to do to recapture their hegemony of the economic issue, which is crucial to taking new turf in 2010 and 2012, is 1: admit Friedman was wrong, and 2: find a new (but not pure Keynesian) short-term economic model. I know there is a quasi-Keynesian demand model that actually works off the supply side called RBC which is worth considering. It suggests that recessions are actually just the rational reaction to changes in the ability of a nation to produce, so improving the supply-side will actually stimulate demand far better then monetary and fiscal policy which are basically fingers in the dike. Anyways, if you want to read up further on it:

en.wikipedia.org/wiki/Real_Business_Cycle_Theory

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