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Essay / Research Paper Abstract
This 6-page paper discusses the meaning behind fiscal and monetary policy, and whether a stronger policy in both of these realms could help prevent the 2001 recession. Bibliography lists 3 sources.
Page Count:
6 pages (~225 words per page)
File: D0_MTfismon.rtf
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Unformatted sample text from the term paper:
when left alone, does a reasonably good job of balancing itself out, there were concerns when the recession happened, especially because it followed one of the largest peacetime economic booms
in history. As always, when recessions occur, the finger pointing occurs as well. Many blamed the monetary policies of the Federal Reserve
Board (the Fed), noting that Fed chair Alan Greenspans slow raising of interest rates to try to dampen down what hed dubbed as "irrational exuberance" when it came to the
economy kicked in -- right at the time that cyclically, the economy was going into a recession. Many also blamed the fiscal
policies at the time -- an increase in taxes, at the time (which is typical fiscal policy during good times) ended up slowing down the economy as well. Or at
least, these were the theories. In this paper, well try to determine if a stronger fiscal or monetary could have helped avoid
the downturn -- or at the very least, could have stopped the slide. Could fiscal or monetary policy have helped? Before we
answer this particular question, it would be helpful to define what the differences between these two policies are. Monetary policy, in its
most basic form, is the method by which a countrys central bank (in the case of the U.S., the Federal Reserve is the central bank) has an influence when it
comes to the supply, demand and price of money and credit -- and policy in terms of monetary policy is formulated so that a nations economic objectives can be met
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