Updated: 11/5/2018
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  • Monetary vs fiscal policy Comic 
  • By Adrian Cossio
  • Fiscal Policy is conducted by the government. Two tools are spending and taxes.
  • Monetary is conducted by fed. Their tools are discount rates, RRR, and open market.
  • What happens if taxes goes down
  • If taxes go down that means more spending which makes prices go up
  • The economy in Texas is good. Manufacturing is up. Retail is up. Labor shortages
  • The fed is limiting the money supply.
  • That will help the Texas economy. Fed fund rate goes up.
  • The Fiscal and Monetary contradict each other. Fed is trying to keep inflation under control
  • Sounds great
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