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Monetary v Fiscal policy
Updated: 3/25/2020
Monetary v Fiscal policy
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Storyboard Text

  • Kailey SasserMonetary v. Fiscal policy2nd period
  • Mom, today I learned that monetary policy is the management of the money supply and interest rates, while fiscal policy is the governmentt adjusting spending and interest rates to change the economy.
  • Come in and tell me more!
  • Actually I did see Trump put money back into the system, helping the situation.
  • You know, recently with this virus going around, the economy has been decreasing relatively fast. This caused the president to find ways to bring it back up.
  • The Texas economy has been increasing moderately. Nonfinacial services manufacturing, housing demand and loan growth are some of the few aspects of the economy that are increasing!
  • Yes, the economy is mainly increasing but retail and employment have not been increasing. Also, due to the corona virus, there is uncertainty in the business world.
  • Did you see that the Fed predicted a long run of 2 percent, and since that isn't being met they have decided to hold out on making changes, and will wait for more info on the economic outlook.
  • As that is true, they are trying to maintain a range of 2-1/4 to 2-1/2 for the federal funds rate. This will then give them time to adjust with the future circumstances.
  • What you may not know is that the fiscal and monetary policies contradict one another, which is why the economy is so up and down. When they match up perfectly there is no recession, which we know we have sometimes
  • Oh wow!
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