Monetary vs Fiscal policy

Monetary vs Fiscal policy

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  • Salome Akhalaia
  • Fiscal policy is run by government and it refers to the use of government spending and tax policies
  • Today we were learning about Monetary and Fiscal policy, but I really couldn't get the difference between the two of them. Can you explain it to me?
  • Monetary policy is run by Fed and it consists of Discount rate, reserved requirement and open market
  • What about monetary policy?
  • If government spending keeps increasing the prices are going to go up. and if taxes go down, people will spend more money, therefore prices of products will go up.
  • I also have other questions. How will continued government spending impact the economy?  And how will new tax code impact the economy?
  • In Texas we have increased manufacturing and retail. Texas housing market is slowing down and there are labor shortage. It's a beginning of inflation
  • What about the Texas Economy? 
  • U.S. economic activity has gone up and so did inflation. Fed funds rate increase, which helps Texas economy.
  • What actions, if any, has the Fed taken regarding federal funds rate? Will this help or hurt the Texas economy?
  • They contradict each other.
  • Last question,  do the fiscal and monetary policies contradict each other or support each other?
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