Economic Policies, Fiscal Policy And The Monetary Policy

A recession does not just affect the lives of the people in the country that is having a downturn in there economy but also it affect the global economy. The United States have had several economy catastrophes that almost crippled the United State and the rest of the world causing the government to act fast to slow down the economic downward spiral. The United States’ government throughout history has attempted to develop plans to slow down or prevent the country from having a complete economic meltdown. In this paper I will explore two expansionary economic policies, fiscal policy and the monetary policy which the federal government uses to help move the economy out of a recession and effects they have on taxes, interest rate, GDP, and employment. The Great Depression is one of the greatest economic devastation in history and the government was unsure how to bandage or slow down the bleeding. The Great Depression was a learning experience for the United States government an d was where the Government would prepare and come up with a plan to deter or prevent another depression. In the 1930s, the Great Depression was caused from the stock market crashing and caused the global decline which had the value of investment steady decline. Not only did this decline affect big business and the rich but also it affect the middle class and poor, incomes, production of product, sales of production, investment and stock value decreased. According Wikipedia, The consensusShow MoreRelatedFiscal and Monetary Policy and Economic Fluctuations901 Words   |  4 Pageswas relatively doing fine more than five years ago before it was hit by economic downturn or recession. During this period, the American economy was at its peak, particularly in the fourth quarter of 2007. 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