Monday, December 5, 2011

Fiscal or Monetary Policy, Which do you choose?

During the Great Depression, we saw that the Fed actually implemented contractionary monetary policy, which worsened economic output, due to its adherence to the gold standard. While the Fed has used different policy levers to spur growth during the recent economic crisis, in its recent economic forecast the Fed Chairman Bob Bernanke stated that no new measures would be taken despite a bleak outlook for the future. The Fed called on other policymakers, such as Congress, to use fiscal policy to help spur growth and create jobs. Take a read:http://www.nytimes.com/2011/11/03/business/economy/fed-holds-rates-and-strategy-steady.html?ref=federalreservesystem

No comments:

Post a Comment