Monetary vs Fiscal comic

Monetary vs Fiscal comic

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  • By Blayne Smith / Julian Roberts
  • Monetary vs Fiscal policy Comic
  • 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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