monetary and fiscal

monetary and fiscal

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  • Monetary Policy is controlled by the Fed. It uses discount rate, RRR, and open market.
  • Fiscal policy is controlled by the government by spending money and taxes.
  • If the government continues spending, prices will go up.  When taxes go down,  people spend more which leads to a price increase.
  • The Texas economy is good. Manufacturing and retail are up. The housing market is slowing down,  and there are labor shortages. We are at the beginning of inflation.
  • In the United States, the eco activity is up. Unemployment is starting to decrease while inflation prices are up.  The U. S. is at the beginning of inflation.
  • Monetary and fiscal policy both contradict. The fed wants to limit the money supply, but the government is expanding the money supply.
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