Fed, Central bank - monetary policy and fiscal policy
Can anyone please explain in few lines- goals of Fed / central bank, fiscal policy / monetary policy tools used by each?
This is a sure item with atleast 2 questions I guess
I am listing few points: correct me if I am wrong
Fiscal policy: done by Fed
1. Govt spending
2. Taxation
Goals of Fed..??
Monetary poilicy:
1. Max employment
2. stable prices
3. Moderate long term interest rates
Instruments used:
1. Instrument rule
2. Targeting rule
Monetary policy managed by central bank
Tools:
1. Inflation targeting
2..???
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