Monetary And Fiscal Policy : Monetary Policy

1435 WordsSep 7, 20156 Pages
Monetary and fiscal policy Introduction Fiscal policy is defined as the power that the federal government poses that enables it to impose taxes and also spend to achieve its goals in the economy. On the other hand, the monetary policy is maintaining the programs that try to increase the nation’s level of business through regulation the supply of money and credit. Currently, one of the most important roles of the federal government is to regulate and also ensure that there is stability in the economy. Through the use of both policies options, there is a goal of increasing and decreasing the level of business activity in the country. Governments in the world prefer to have a productive growing economy, but an economy can also be too productive where the government may enact policies to slow down the economic growth. This paper will discuss how both the monetary and fiscal policies are used in keeping the unemployment and inflation low while ensuring that the GDP is increasing. How fiscal and monetary policy can move the numbers to an acceptable level while keeping inflation the same The government attempts to keep unemployment and inflation to a minimum; at the same time, it attempts to obtain fast financial development with lasting symmetry in the balance of payments. These aims are attracted concentration since they are not likely to be obtained in their totality. Contrasted to an earlier performance, inflation of USA has been low and extraordinarily even since the

More about Monetary And Fiscal Policy : Monetary Policy

Open Document