Essay about Fiscal and Monetary Policy
The Pros And Cons Of Fiscal And Monetary Policy - Words | Cram
For most of the last thirty years, the operation of fiscal and monetary policy was in the hands of just one person — the Chancellor of the Exchequer. However the degree of coordination the two policies often left a lot to be desired. Indeed the Treasury has a non-voting representative at MPC meetings. The government lets the MPC know of fiscal policy decisions that will appear in the annual budget. Disclaimer: This work has been submitted by a student. This is not an example of the work written by professional academic writers.
Monetary and fiscal policy related to the recessionary gap Essay
The topic as below: How do fiscal and monetary policies under the fixed exchange rate in Saudi Arabia help the country to increase the living standard? What are the goals of the monetary and fiscal policies, and how are they achieved? What are the challenges that the country may encounter on the journey to achieve the goals? What are the instruments they may use to overcome these challenges?
An argument can be made about the use of taxes as a means to influence the economy. In fact, some economists-democrats and republicans- have suggested that the economy would fare better if the government would eliminate the income tax altogether and replace it with a consumption tax, taxing people on what they spend rather than what they earn. As a result, we will take a look at consumption tax as a macroeconomic policy to stimulate the current U. A consumption tax—also known as an expenditures tax, consumed-income tax, or cash-flow tax—is a tax on what people spend instead of what they earn. Moreover, most of the political debate over a consumption tax has centered on whether the United States should adopt a value-added tax VAT similar to the ones that European countries have.