Economic Policies.docx - Federal Reserve System Federal Reserve Chair Janet Yellen the first woman to lead the US federal reserve Managing the Business

Economic Policies.docx - Federal Reserve System Federal...

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Federal Reserve System Federal Reserve Chair Janet Yellen- the first woman to lead the US federal reserve Managing the Business Cycle Policy Area Monetary ($ supply, Banking) Fiscal (budget) Recession = high unemployment = stimulus Federal drop discount rate or buys government bonds Rise in government spending , fall in taxes Expansion = Risks of high inflation = Austerity Federal rise in discount rate or sells government bonds Fall in government spending, rise in taxes Economic Theory Keynes British People are chaotic: “Animal spirit” Government must pull economy out of bust Bailout Regulation Hayek Austrian People are rational Free Markets rule Laissez-faire Budget Introduction Deficit (yearly shortfall) vs Debt (total amount owed) Expenditures = spending Revenues = taxes This is fiscal policy. The Budget and Impoundment Act of 1974
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  • Spring '16
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  • Government, Monetary Policy, government spending, Congressional Budget Office, current budget process, H+S Budget Committees

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