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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
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