Fiscal Policy Is The Federal Government 's Plan For Funding And Running Federal Programs
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 government securities and raises and lowers the discount rate for US banks.
Should the government create a law mandating a balanced federal budget? Support…