Monetary Policy Independence Amid Fiscal Policy Deterioration
Monetary policy and fiscal policy serve different functions and have very different economic effects, but too frequently, their roles and effects are confused. Economic performance is best served when monetary and fiscal policy roles are clearly delineated.
Monetary policy and fiscal policy serve different functions and have very different economic effects, but too frequently, their roles and effects are confused. Economic performance is best served when monetary and fiscal policy roles are clearly delineated. Now more than ever, with so many concerns about the economic recovery, jobs and mounting budget deficits, maintaining the Federal Reserve’s independence in the conduct of monetary policy and re-establishing the optimal boundaries between monetary and fiscal policies is critically important to sustained healthy economic performance.
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