Compare And The Goals Of Fiscal Policy And Fiscal Policy
Compare and contrast fiscal and monetary policy. How are they alike and how do they differ?
Fiscal policy is the federal government’s yearly budget and financial policy for government programs, while monetary policy is the Federal Reserve’s economic policy for the year. For the fiscal policy to be approved, both congress and the president must agree on the outline for the year, but the Federal Reserve is a bank independent to the legislative branch, and doesn’t have to get the government’s permission to pass their monetary policy for the year. Monetary policy and fiscal policy are similar in that they both influence the US economy, but through different measures. The fiscal policy controls taxes and spending, while the monetary policy buys and sells …show more content…
This way the programs will still run smoothly, and the American people will be able to save a little bit of money with lower taxes. Another suggestion I would made would be to use the tool of increasing spending on needed government programs to improve the US economy’s productivity and raise the quality of life for citizens. I would suggest to increase spending on education, healthcare, and social security because all of these government programs need improvement, and this would give them ample funds to continue running