Can you elaborate on our government position at the moment
Currently in our great state of Texas, labor is in a bit of shortage, but the economy of the state is still ok. retail and manufacturing are good, we are starting to get inflation though so feds need to raise fed funds rate to lower it
Wow okay, thanks. What about our national government
The state of the U.S economy is good at the moment with low unemployment and lots of jobs now available, the only problem we have to worry about now is inflation, or too much money in circulation.
Hey, that's pretty good
Sure thing bud, Monetary policies are ran by the Federal Reserve who are responsible for controlling inflation and recession by raising or lowing discount rates and required reserves, and buying and selling of bonds
Wow, now can you explain the differences between Monetary and Fiscal Policies?
And fiscal policies are ran by the government and they use revenue collection and expenditure to influence the economy by increasing/decreasing govt. spending and taxes