Monetary and Fiscal Policy

Mr. President, I present consulted with several economists round the recession and unemployment calculate we are facing. Each has given their professional notion ab come forth the fiscal and monetary policies and the best way to implement all(prenominal) for the best results. I have taken each opinion under advisement and have a recommendation I believe if implemented will bring the economy out of recession and lower the unemployment rate. Economist Lee believes we should raise taxes enchantment Economist Tanney believes we should lower taxes. I believe by gruelling income taxes this will increase disposable income of consumers. This should cause consumers to spend more and stimulate higher levels of economic growth. While you may have questions as to the effectiveness of tax cuts, there is empirical indorse that tax cuts brought an end to the 1974- 1975 recession. Economists Raymond Burke and Patricia Lopez versed their opinion on interest grade. These economists believe either lowering or go away interest rates alone will have a positive effect on the economy. Changes in interest rates take time to affect investment, aggregate demand, and GDP.

The Federal nurse needs to continue to employ a wide picture of tools to promote economic recovery. As long as unbalance in the economy occurs because money demand is unstable or currency to deposits and reserves to deposits ratios vary, targeting interest rates is the wiser. The US intercourse and Federal Reserve need to focus on make clientele and consumer confidence in the future of the US economy. In order for this to occur a combination of fiscal polity and monetary policy must be employed. When the panic subsides, consumers and business will begin to increase purchases. If you want to get a full essay, order it on our website: Ordercustompaper.com

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