Limitations: Fiscal policy vs Monetary Policy
Key Question:
1. What are the limitations of Fiscal policy?
2. What are the limitations of Monetary policy?
3.
Which policy do you think is the most effective out of the two
policies (Fiscal
or
Monetary policy). Why do you think so?
Describe the differences between fiscal policy and monetary
policy. What fiscal and monetary policies might be prescribed for
an economy in a deep recession? Be sure to distinguish between the
monetary and fiscal policy solutions in your answer.
The United States has a system in which Fiscal and Monetary
policy are independent. Do you prefer this approach to
Macroeconomic Policy or would you prefer one group of people
controlling both Fiscal and Monetary policy? Justify your
answer.
The
United States has a system in which Fiscal and Monetary policy are
independent. Do you prefer this approach to Macroeconomic Policy or
would you prefer one group of people controlling both Fiscal and
Monetary policy? Justify your answer.
Can you please research monetary and fiscal policy in Greece and
Zimbabwe and just share with me a little about what you learned.
What happened in those two countries? What were some of the causes?
What were some of the effects? Think about these things as both an
economist and as a citizen. How would you have reacted if you were
in one of those countries? If you had political power, how could
you have better handled these situations? Thank...