Monetary and Fiscal Policy The Monetary and Fiscal Policies, although controlled by two different organizations, atomic number 18 the ways that our economy is unploughed under control. Both policies have their strengths and weaknesses, some situations favoring use of some(prenominal) policies, but most of the time, only one is necessary. The monetary insurance is the encounter of regulating the money tack on by the federal official Reserve Board of Governors, currently headed by Alan Greenspan. One of the master(prenominal) responsibilities of the national Reserve System is to regulate the money supply so as to keep production, prices, and employment stable.
The Fed has iii tools to falsify the money supply. They are the make requirement, open securities industry operations, and the push away rate. The most powerful tool available is the reserve requirement. The reserve requirement is the percentage of money that the bank is non allowed to loan out. If it is lowered, banks are required to keep less money, and so more ...If you postulate to get a full essay, rewrite it on our website:
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