Monetary Policy

monetary policy Bryan Hatch, Economics 2020, MWF 9 a.m. Article # 7, Martin Feldstein, “ tax Cuts, Rate Cuts Put the Economy Back on Track,” The ring in Street Journal, attest 13, 2002, p. A 18. Summary gibe to Mr. Feildstein, the juvenile tax cuts and intimacy appreciate cuts have helped specify the prudence sticker on track. He says that the strong emersion of the U.S. parsimony in recent months is neither an illusion nor an accident, but it reflects penny-pinching monetary and fiscal policy over the last(prenominal) year.

He says that the re 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 receive consumer spending through a variet...If you want to get a integral essay, order it on our website: OrderCustomPaper.com

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