Monetary Policy

monetary policy Bryan Hatch, Economics 2020, MWF 9 a.m. Article # 7, Martin Feldstein, “ undertaking Cuts, Rate Cuts Put the Economy Back on Track,” The grapple in Street Journal, attest 13, 2002, p. A 18. Summary harmonize to Mr. Feildstein, the juvenile tax cuts and hobby appreciate cuts have helped induct the prudence punt on track. He says that the strong emergence of the U.S. parsimony in recent months is neither an illusion nor an accident, except it reflects penny-pinching monetary and fiscal policy over the recent year.

He says that t here has been a key surge in consumer consumption, and that the main(prenominal) reason for that surge was the enactment of the tax cut in early 2001. He also stated that the repeated reductions by the Fed in short-term interest rates back up the expansionary effect of the tax cut. Even though the interest rate reductions were not enough to prevent the recession that began in March of last year, the lower interest rates did wind up consumer spending through a variet...If you want to get a integral essay, order it on our website: OrderCustomPaper.com

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