Monetary vs Fiscal policies

Monetary vs Fiscal policies

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  • Monetary vs Fiscal policiesBy Jacob Groom
  • Professor, can you please remind me the differences between Fiscal and Monetary policies?
  • Of course Peter!  Monetary policies involve interest rates while Fiscal policies have to do with tax rates.
  • Alright, but I have several more questions.  For example, what were some recent  government actions that would effect the economy and  how is the Texas economy fairing now?
  • Alright, now regarding more  Fed actions, what has been done to improve the federal funds rate?
  • Ok, for my last question, do Fiscal and Monetary policies contradict each other?
  • That is all, thank you for your help professor!
  • No problem Peter, good luck studying for the final!
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