Monetary and Fiscal Policy Tools

Front

Who conducts fiscal policy?

Back

Government (president and Congress)

Front

Who conducts monetary policy?

Back

Government (president and Congress)

Front

What are the tools the government can use to conduct fiscal policy?

Back

Taxation and government spending

Front

What are the tools the FED can use to conduct monetary policy?

Back

Reserve requirement, Discount rate, Federal funds rate, open market operations

Front

Expansionary fiscal policy fights

Back

Recession/ unemployment

Front

Contractionary fiscal policy fights

Back

Inflation

Front

Expansionary monetary policy (EASY MONEY POLICY) fights

Back

Recession/ unemployment

Front

Contractionary monetary policy (TIGHT MONEY POLICY) fights

Back

Inflation

Front

Reserve requirement

Back

% of deposits that banks must keep and not lend

Front

Discount rate

Back

Rate of interest that the Fed charges banks to borrow money