Notes on Differnt Types of Economic Polices

Notes on Economic Video

Recession - wretched demand. (Not enough people buy)

What Causes quoin?

Times when inflation starts to occur. (When prices are rising, getting away of control.) The presidential term tries to scrap this by making money scarce and by face lifting taxes and by cutting government spreading.

Fiscal insurance vs. monetary form _or_ system of government:

There are 2 main ways the government has to advance the economy.

Fiscal polity:

Occurs when the administrative and congress are involved and has to do with haping and taxing.

Monetary Policy

Is under the control of our central bank (our federal official resource). Monetary policy involves changing affair notes and changing the meter of money the commercial banks ware to lend. (money supply.)

To control inflation

Federal Reserve raises interest rates making borrowing more expensive, than people have less to append - buying mightiness and barrowing power go down,)

To correct a recession

Federal Reserve lowers interest notes. As peoples buying and borrowing power improves people will go out and make more purchases.

There are two main schools of scotch thought in the United States today. (Keynes vs. Friedman.)

Keynesian philosophy says there is inadequate demand on not enough purchasing power in the in the economy. He asserted increased government spending can solve the problem.



President Roosevelt tried to aim Keynesian philosophy into practice in his New Deal. He had the government spend more on various act as programs.

Keynes said - In bad times - government should spend more and tax less. Such will increase demands. Keynesian philosophy is associated with a strong central government , Democrats and liberals.

VS.

Monetary Policy associated with Milton Friedman, deals with the Federal Reserve., money supply and interest rates. Monetary policy -says the economy is stale. Only actions taken by the government function to destabilize it. Thus, monetary policy says...

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