Monetary v. Fiscal policy

Monetary v. Fiscal policy

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  • Of course I know more about the economy, that's my major!
  • Then go ahead and tell me the difference between monetary and fiscal policy. 
  • Fiscal policy is conducted by the government and uses taxes and spending. While monetary policy is conducted by the federal reserve and uses discount rate, open market, and RRR
  • Like right now, we are spending more money, therefore, prices will come up. The tax code will decrease, leading to inflation, then eventually it will stabilize again. 
  • You can walk away, but right now, Texas economy is good. Like manufacturing and retail have gone up. Home sales have slowed down, and there has been a labor shortage however, inflation is about to begin. 
  • The US economy activity is increasing, and unemployment has gone down. But the federal funds rate has gone up because of inflation.
  • Why did I even bring this up?
  • And this really contradicts the policies because inflation and recession is a constant cycle!
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