I disagree with the former Economic adviser to the president on the stance of a fiscal policy that would raise taxes and reduce government spending. Raising taxes will in the end reduce the spending power of consumers, which will then lead to a continual increase in the unemployment rate.
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In addition, this is an election year for the president and raising taxes and reducing government spending can unfavorably effect his reelection opportunities.
In conclusion, I look upon the recommendation from Allison Tanney on expansionary fiscal policy and expansionary monetary policy. In order to combat inflation the Fed has to increase the displace rate and federal funds rate to reduce the property supply. This can be accommodated by raising the reserve requirement. I believe fiscal policies will pull our economy erupt of this recession as it will make out the American throng spending money again and grow our workforce.If you want to get a full essay, order it on our website: Ordercustompaper.com
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