Monetary/fiscal Policy :: essays research papers

Monetary/Fiscal Policy regime monetary and fiscal policies change all the time. These policies areinstalled or laid for the mitigatement of trade, inflation, unemployment, thebudget, or many former(a) economic factors. In my opinion, it seems uniform two peoplehave the majority of the control when it comes to forming these policies. Thefirst someone who influences these policies is chair Bill Clinton whoproposes levy cuts, to equilibrate the budget (Clintons budget end should begiven to congress soon), minimum wage increases, or other legislation to improvethe economy. The second person who influences policy is the Federal agreeBoard Chairman Alan Greenspan who can truly destroy our economy by a slightmiscalculation. Greenspan is so influential that the mere speculation of his do a move can cause panic buying or selling in the open markets. AlanGreenspan has the power to increase or change magnitude the money supply by ever-changingreserve requirements, by changing the dis count rate, or by buying or selling U.S.Securities everyplace the open market.The major governmental problem is trying to balance the budget. The joinStates government is currently 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 Congress are all working towards a equilibrize budget bythe year 2002. As many economists explain , the motive is for legislation to keepthe budget balance for years to come and non look for a quick fix to balancethe budget for only(prenominal) a few months to quiet critics. The government takes stepsconstantly to balance the budget economists say that the chances of inking adeal this year are better than ever.President Clinton has currently proposed an offer of $100 billion in evaluate cutsthrough 2002. These cuts are aimed at giving relief to middle club citizens.A few of his other proposals include $500.00 child tax credit, tax deductionfor post high school education, increasing the limits of individual seclusionaccounts, and elimination of the capital gains tax. Despite these cuts, hestill believes a balanced budget will be achieved by the year 2002.Greenspan, in an swither to shave billions of dollars off the deficit, explainedto Congress that they are overpaying Social Security recipients. Greenspans recommendation sets the stage to successfully balance the budget. His reasoningbehind these allegations is that the cost of vivification is overstated and he isurging Congress to correct the problem which would motivate inflation, grossnational product, and the budget.InflationThe fourth quarter results have been measured and the economy is in greatshape.