Fiscal V Monetary Policy

Fiscal V Monetary Policy

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  • Explaining Monetary and Fiscal Policy
  • Oh most definitely, give me one sec to prepare the explanation
  • PSSSST... Hey do you know the difference between Fiscal and Monetary Policy? I didn't study for Mr. Fancy's class.
  • The first difference would be that Fiscal Policy is determined by the government, while Monetary Policy is set by the Federal Reserve.
  • No, you can thank Donald Trump though.
  • Another difference would be that Fiscal Policy uses government spending and taxes, whereas Monetary Policy uses Reserve Requirements, Discount rates, and the Open Market.
  • So we can thank the fiscal policy for the new tax cut...?
  • So what does our economy look like right now?
  • Currently, Texas' economy looks great. We are a little low on business growth in certain areas, but other than that we are doing really good.
  • Then what has the Fed done to improve?
  • The Fed has continued to discuss Monetary policy rules and regulates rule prescriptions. These things will help the economy grow in both the short and long run.
  • THANKS!!!
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