The Need for Stimulative Monetary and Fiscal Policies

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Part 1: In a situation where the country is in a period of high unemployment, interest rate sare at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year the Federal Reserve System would have to focus on monetary policy and the government would have to concentrate on fiscal policy. The Fed would thus need to install a stimulative monetary policy in that would better the economy's Gross Domestic Product in the future. Monetary policy would, however, have to be regulated in order to keep inflation in its current position. By cutting taxes, introducing stimulative fiscal policies, and increasing spending, economic growth is likely to occur in the short run. As a president, I would propose a fiscal tax that would encourage the appearance of more jobs by directing more funds toward fields like production. I would decrease taxes and I would encourage government expenditure in order for unemployment to reach a level where it can be controlled. I would be careful about balancing fiscal policies so as for the economy to benefit as a result of this enterprise. When considering Franklin D. Roosevelt's strategy of using fiscal policy with the purpose of ameliorating the effects that the Great Depression had on the American public, it is only safe to say that creating jobs as a result of implementing government programs on a local level is likely to reflect positively on the economy. As a president, I would also provide loans and grants to individuals

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