标题: What are included in expansionary fiscal policy? [打印本页] 作者: Foufou 时间: 2011-7-11 18:41 标题: What are included in expansionary fiscal policy?
I know govt purchases and tax cuts are included. But for some reason I thought, Funds target rate and FOMC operations are also included. Am I wrong?
Please help!作者: JRossSter 时间: 2011-7-11 18:41
Fiscal Policy has to do with the Governments Budget. Which means government revenues and expenditures. Following this rule, the fiscal policy instruments are
1. Government Spending
2. Taxation
On the other hand, anything to do with the money market or the monetary sector is a monetary policy instrument. Like,
1. Open Market Operation (most widely used policy)
2. Discount Rate
3. Required Reserve Ratio
All these three are usually aimed at changing the Federal Funds Rate to influence the economy. Hope this helps.
