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  • I really don't understand the difference between fiscal monetary policies
  • The difference is easy to understand, but we also need to look at local versus national standing
  • first, lets take a look at Fiscal policy and the state of local spending
  • Fiscal Policy
  • Monetary Policy
  • Fiscal Policy
  • That sounds really hard and like it will take a long time
  • Fiscal Policy is controlled by the government. they control inflation by spending money and raising taxes. The local government is overall good, but inflation is rising and house sales are flat. prices may rise soon.
  • Monetary Policy
  • So its that simple?
  • Monetary Policy uses the Federal reserve and to control inflation they buy and sell bonds, increase RRR, and use discount rates. The national standing seems good as well with the government spending going up as well as output. new tax codes are leaving people with more money although prices may rise.
  • well now you do! although the policies contradict each other in how they respond to inflation, they still work.
  • I didn't know it was that easy!
  • The End
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