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Fiscal? Monetary ?

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Fiscal? Monetary ?

Texto del Guión Gráfico

  • Hi Class!!! today we are going to learn about fisical and monetary Policy
  • 0oohh I know what is Mrs .Nichols i think Monetary polecy refers to the actions of central banks to achieve macroeconomic policy objectives such as price stability, full employment, and stable economic growth
  • yes, that excatly what it is Camille, now who can tell , what is Fisical Polocy ?
  • Fiscal policy refers to the tax and spending policies of the federal government
  • yes and the congress and the administration is who determined the decisions
  • Goog Job Guys , we have different tools for each of one we have the RRR that is the % of deposits thta bank keeps we also have OMO that the buying and selling of bonds and we also have Discount Rate that is the interest rate fed charges on loans to member banks
  • Yes, thats exactly right Javier!!, higher interest rates mean higher borrowing costs people will eventually start spending less. which will cause inflation to fall.Similarly, to combat the rising inflation .Well class tahts evrytging for today . good jobs guys !!
  • yes and for fisicial the two main tools are taxes and spending.
  • i also heard that when he Fed increases interest rates, it becomes more expensive to borrow money.
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