Fiscal Policy: Monetary Policy For The United States

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Monetary policy is the “actions of central banks, in the United States culminating in the Federal Reserve, designed primarily to maximize employment and moderate inflation” (483. The central bank, or main enforcer, of monetary policy for the United States would be the Federal Reserve. In other words, this means that the Federal Reserve, mainly, controls interest rates and manipulates the national money supply. This would allow for some control of employment rates and inflation rates, especially during a period of financial crisis. Fiscal policy is the “taxing and spending policies carried out by government, generally in an effort to affect national economic development” (483). In other words, the government works to influence their nation’s

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