Fiscal Policy Is The Federal Government 's Plan For Funding And Running Federal Programs

1451 Words Apr 10th, 2016 6 Pages
Fiscal policy is the federal government’s plan for funding and running federal programs. The goals of fiscal policy are to make it possible for government programs to run so that they can help struggling Americans. The tools that are used for fiscal policy are taxing US residents to fund government help programs and spending the money from taxes for the year in the aid programs. The federal government uses fiscal policy to help stabilize and promote growth in the economy by focusing parts of the money in the budget for fiscal policy on certain programs that promote growth.
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…

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