Monetary/fiscal Policy :: essays research papers

Monetary/Fiscal PolicyGovernment monetary and pecuniary policies change all the time. These policies beinstalled or fixed for the betterment of trade, inflation, unemployment, thebudget, or many other economic factors. In my opinion, it seems like two pluralityhave the studyity of the control when it comes to forming these policies. Thefirst person who influences these policies is President card Clinton whoproposes tax cuts, to balance the budget (Clintons budget proposal should be given up to congress soon), minimum wage increases, or other legislation to alterthe economy. The second person who influences policy is the Federal ReserveBoard prexy Alan Greenspan who can truly destroy our economy by a lithesomemiscalculation. Greenspan is so influential that the mere speculation of hismaking a lift can cause panic buying or selling in the open markets. AlanGreenspan has the power to increase or decrease the money grant by changingreserve requirements, by changing the discoun t rate, or by buying or selling U.S.Securities over the open market.The major governmental problem is trying to balance the budget. The UnitedStates government is soon in debt $5,262,697,717,000 as of February 7. Thisnumber grows about $10,000 per second(see charts 2,3,and 7). President Clinton,Chairman Greenspan, and relation back are all working towards a balanced budget bythe year 2002. As many economists explain , the need is for legislation to livingthe budget balanced for years to come and not look for a quick fix to balancethe budget for only a a couple of(prenominal) months to quiet critics. The government takes stepsconstantly to balance the budget economists distinguish that the chances of inking adeal this year are better than ever.President Clinton has before long proposed an darker of $100 billion in tax cutsthrough 2002. These cuts are aimed at giving relief to middle class citizens.A hardly a(prenominal) of his other proposals include $500.00 child tax credit, tax deductionfor localise high school education, increasing the limits of individual retirementaccounts, and elimination of the metropolis gains tax. Despite these cuts, hestill believes a balanced budget go out be achieved by the year 2002.Greenspan, in an effort to shave billions of dollars off the deficit, explainedto Congress that they are overpaying Social Security recipients. Greenspanstestimony sets the stage to successfully balance the budget. His reasoningbehind these allegations is that the cost of living is overstated and he isurging Congress to correct the problem which would affect inflation, gross study product, and the budget.InflationThe fourth quarter results have been calculated and the economy is in greatshape.