Economics... anyone?
 

I got exam tomorrow on economics and the main topic will be to compare Fiscal vs. Monetary policy.
I dunno shit, help me ouit

contact me.

i took Econ 4 and Econ 110 b4

oh. and is it about Micro or Macro?

Damn this is good, but it is Japan!! Anyone seen something like this but for canada.

don't you have books on this material?

http://www.gofuckyourself.com/showth...threadid=99493


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The little known truth about our MONEY ("United States")

The Federal Reserve System,
and the Federal Income Tax (& IRS).



Lawrence

1) Discretionary Fiscal Policy. Fiscal policy is changes in the taxing and spending of the federal government for purposes of expanding or contracting the level of aggregate demand. In recession, an expansionary fiscal policy involves lowering taxes and increasing government spending. In an overheated expansion, a contractionary fiscal policy requires higher taxes and reduced spending.

The first way this can be done is through the federal budget process. However, this process takes so long -- 12 to 18 months -- that discretionary fiscal policy cannot be matched with the business cycle. The Kennedy tax cut of 1964 and later the Ford tax increase of 1974 hit the economy just when the opposite contracyclical policy was needed. As a result, the federal government no longer uses discretionary fiscal policy.

2) Automatic Stabilizers. A second type of fiscal policy is built into the structure of federal taxes and spending. This is referred to as "nondiscretionary fiscal policy" or more commonly as "automatic stabilizers". The progressive income tax (the major source of federal revenue) and the welfare system both act to increase aggregate demand in recessions, and to decrease aggregate demand in overheated expansions.

3) Monetary Policy. Monetary policy is under the control of the Federal Reserve System (our central bank) and is completely discretionary. It is the changes in interest rates and money supply to expand or contract aggregate demand. In a recession, the Fed will lower interest rates and increase the money supply. In an overheated expansion, the Fed will raise interest rates and decrease the money supply.


What School are you going to?

Sorry, I would rather take U.S. examples. Canada almost always decides to take the same course of action as the U.S. with respect to this subject, especially monetary policy changes.

So this doesn't help? How did it go?