Posts tagged as "Fiscal Policy"

Posted by ShopMesh on 20th January 2010

Fiscal and Monetary Policy

Imagine you are listening to the radio around the year 1900 and there is news that the economy is going to enter into a recession. Chances are that sooner or later you will not have a job, and there isn’t going to be nearly as many goods available because of lack of production.  The only [...]

Posted by ShopMesh on 6th January 2010

Fiscal Policy or Monetary Policy, which will help us out of the recession?

There is sometimes confusion around the difference between fiscal policy and monetary policy. Fiscal policy; Measures employed by governments to stabilize the economy, specifically by adjusting the levels and allocations of taxes and government expenditures.1 Monetary policy; The actions of a central bank, currency board or other regulatory committee that determine the size and rat

Posted by ShopMesh on 2nd December 2009

Bond Fundamentals – Monetary Policy and Fiscal Policy

It’s the Federal Reserve Bank that influences the money supply. Three tools are used to implement monetary policy:
1. Open Market Operations
2. Discount Rates
3. Reserve Requirements
Since open market operations is the tool used most, we will cover it. Here’s how it works: When the economy is growing too fast and the Fed is worried about the [...]