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Jewish World Review
Bookmark These: Educate yourself on fiscal, monetary policy
http://www.JewishWorldReview.com | (MCT)
Pundits talk about fiscal and monetary policy, and our eyes may glaze over. But these terms are crucial as decision-makers try to decide how badly the economic recovery is faltering — and what to do about it. These sites may help us understand.
—Ask Dr. Econ: A description by "Dr. Econ" at the Federal Reserve Bank of San Francisco cites examples before the latest recession when central bankers and the government attempted to stimulate, then slow, the economy. In short, central bankers honcho monetary policy by tinkering with the money supply and interest rates, while politicians use fiscal policy — their tax and spending powers. "Monetary policy is typically implemented by a central bank, while fiscal policy decisions are set by the national government. However, both monetary and fiscal policy may be used to influence the performance of the economy in the short run," this short article says. http://go.philly.com/fiscal1
—Economics Help: A blog by British economics teacher Tejvan R. Pettinger, who is also a contributor to an economics channel on YouTube, has a number of posts dealing with fiscal policy and monetary policy, including this one that describes both as tools to achieve two main goals: control inflation and reduce unemployment. A commenter suggests that both tools are a waste, and it's better to "let the markets work." But what if they don't? http://go.philly.com/fiscal2
This is Pettinger's short essay on why economics matters. He was bemoaning a BBC report that, in a recent year, only three people had trained to become economics teachers. http://go.philly.com/fiscal3
—EconEdLink: The Council for Economic Education's site, which provides classroom material for teaching economics through the high school level, offers this lesson on fiscal and monetary policy, and credits 20th-century British economist John Maynard Keynes with developing the most robust theory incorporating the twin policy tracks for fine-tuning economies. http://go.philly.com/fiscal4
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