Question

Fiscal and Monetary Policy

So now, since you've learned a bit about policy, and the difficulties associated with its implementation, your task for this discussion is perhaps the most challenging one.

In your initial post, you are to write to either the President (on fiscal policy) or to the Chair of the Federal Reserve (on monetary policy) describing a specific policy action that you believe should be taken at this moment in time (e.g., lower taxes or buy bonds) and explain why you would take the action (what is currently happening in the economy and what will this action accomplish?). Your thoughtful post (of between 200 - 400words)You can learn about the current state of our economy by consulting newspapers or news websites..

Answer 1

I am from India , so I will quote accordingly which policy should be taken as per the present situation of the country.

I know India is growing fastly but as the country is internally dealing with many problems like poverty , unemployment and economic development .

I will prefer Expansionary fiscal policy as there is need of lot of infrastructure and economic development required for our country with a very large population. If they follow expansionary fiscal policy they will lower taxes and increase government expenditure which will help the unemployed youth to get jobs on temporary basis which will be a good sign. So when there is more infrastructure development there will be more job opportunities along with more growth in other economic factors and industries in different sectors. There will be lot of pressure on the government but still it will help the country to grow in a very good way.

Even in this fiscal policy if they are able to make the unemployed get trained and provide them necessary support to make them self employed will also be a good sign. I hope this is the way to workout the present situation of the country.