monetary and fiscal policy :: essays research papers

monetary and Fiscal PolicyMonetary polity is the plan to expand or contract the bills supply in order to influence the hail and availability of realization. Fiscal insurance policy is another tool for the government essentially spending and taxing, or borrowing money. Throughout this essay I result be writing about these two policies. I will be basically comparing and contrasting them.Monetary policy is more on the lines to help the nation?s money supply and help credit so the economy can gain certain things. Fiscal policy helps control the taking, borrowing and spending. Monetary policy comes with different plans to help, such as the easy money supply which helps expand the money supply, it increases aggregate demand, and promotes economical growth. Tight Money Policy is the higher interest rates and the money supply.Fiscal policy is like missing money. What do I tight by missing money? Well, when you got your first paycheck at head for the hills didn?t you wonder why i s your paycheck so little or less then what you expected? Well that?s what I think of by ?missing money.? This ?missing money? goes to federal, states, and local governments as taxes. other example would be when your purchasing an item and the price tag says $30 and when the item is registered the total is $32.48. That?s the taxes making the price rise a little higher.In my opinion, what I basically think is that monetary policy goes for the banking system to achieve money. For example, say that they offer C.D.?s and say I put $3000 in a C.D at my bank and 6 months later on its not $3600. So they borrowed my money to use it for there needs and than they delve it back to me with some interest.