Which of the following best describes the difference between
monetary policy and fiscal policy?
Monetary policy is quicker to implement but has a longer effect
lag than fiscal policy.
Monetary policy is slower to implement but has a longer effect
lag than fiscal policy.
Monetary policy is quicker to implement but has a shorter effect
lag than fiscal policy.
Monetary policy is slower to implement but has a shorter effect
lag than fiscal policy.
Explain the differences between Monetary Policy and Fiscal
Policy? Which policy do you think is best at stabilizing the
economy during a recession or continue GDP decline?
Explain the tools available to the Federal Reserve to
implement expansionary monetary policy and the tools available to
the Federal Reserve to implement contractionary monetary
policy.
The
architects of monetary and fiscal policy seek to use the tools at
their disposal to meet macroeconomic policy objectives. Discuss
some of the challenges – specifically around the timeliness and
accuracy of data – that they face in trying to decide what policies
to implement. Are there additional timing challenges unique to
fiscal policy (but that monetary policy makers can avoid)? Given
all these challenges, what do you think policy makers should do
going forward?
The architects of monetary and fiscal policy seek to use the
tools at their disposal to meet macroeconomic policy objectives.
Discuss some of the challenges – specifically around the timeliness
and accuracy of data – that they face in trying to decide what
policies to implement. Are there additional timing challenges
unique to fiscal policy (but that monetary policy makers can
avoid)? Given all these challenges, what do you think policy makers
should do going forward?
When you make your...
There are pros and cons of using monetary and fiscal policy
tools to stabilize the economy.
Explain the main arguments in favor of economic stabilization
during recessions. Explain why policy lags could make stabilization
policies counterproductive.
What are the justifications given in favor of more government
involvement in the market economy? What are the reasons given in
favor of less government involvement in the market economy?
Monetary and fiscal policy are seen as appropriate tools to try
to steer the macroeconomy. What are the current settings of these
tools? Who makes the decisions to change one of these tools? Are
the decisions based on democratically elected officials actions or
appointees? What are the advantages and drawbacks of elected
officials vs. Appointees??