economic policy n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
ECONOMIC POLICY PowerPoint Presentation
Download Presentation
ECONOMIC POLICY

Loading in 2 Seconds...

play fullscreen
1 / 16

ECONOMIC POLICY - PowerPoint PPT Presentation


  • 53 Views
  • Uploaded on

ECONOMIC POLICY. ( Or… “ How Many Harvard Economists Does It Take to Craft an Economy Policy? ”. FISCAL VS. MONETARY POLICY. FISCAL POLICY Tax and spend to affect economy Deficit vs. Surplus. MONETARY POLICY Use interest rates to control economy

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'ECONOMIC POLICY' - naoko


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
economic policy

ECONOMIC POLICY

(Or…

“How Many Harvard Economists Does It Take to Craft an Economy Policy?”

fiscal vs monetary policy
FISCAL VS. MONETARY POLICY

FISCAL POLICY

  • Tax and spend to affect economy
  • Deficit vs. Surplus

MONETARY POLICY

  • Use interest rates to control economy
  • Lower rates encourage borrowing and spending
slide4

The market will not automatically operate at

  • full-employment, low inflation
  • Emphasis on savings vs. spendings
  • The key is to create the right demand
  • If demand is too low, government should pump
  • $ into economy (public works, etc)
  • If demand is too great, government should
  • taken $ out of circulation by raising taxes and/
  • or spending less.
  • Government activism
  • Liberal
  • FISCAL POLICY
monetarism
MONETARISM

Milton Friedman (1912-2006)

slide6

Inflation occurs when there is too much

  • money, and too few goods
  • Value of dollar decreases
  • Gov’t should have a steady, predictable
  • increase in the money supply equal to growth
  • Generally, gov’t should leave matters alone
  • (Free Market)
  • Conservative
  • MONETARY POLICY
price wage controls
Price & Wage Controls

John Kenneth Galbraith

(1908-2006)

slide8

Government should regulate the max prices

  • charged and wages paid in larger industries to
  • control inflation
  • Socialism
industrial policy
INDUSTRIAL POLICY

Robert Reich

(1946- )

slide10

Government should invest to keep key

  • industries healthy or plan for replacements
  • Socialism
supply side theory
SUPPLY-SIDE THEORY

Arthur Laffer

(1940- )

Paul Craig Roberts

(1939- )

slide12

Less government interference

  • Cut taxes a lot to encourage people to work,
  • save, and invest
  • Increased investment will lead to more jobs
  • Conservative
  • FISCAL POLICY
slide14

Reduced government spending on social

  • programs
  • Increased military spending
  • Sharp income tax cuts
  • Increased social security taxes
  • Result: HUGE budget deficit that lowered
  • unemployment and helped the rich
slide15

WHO HELPS CRAFT ECONOMIC POLICY?

  • CEA (Council of Economic Advisors)
  • OMB (Office of Management and Budget)
  • Secretary of Treasury
  • The Federal Reserve Board (the Fed)
  • -7 members appointed by Pres, confirmed
  • by Senate for 14 year terms
  • -Regulates the supply and price (interest
  • rates) of money
  • -Congress must approve all expenditures
  • -Can control Fed by threatening to reduce its power
  • BUDGET
  • -Pres submits to Congress in Feb
  • -Analyzed by the CBO (Congressional Budget office)
  • -Budget Resolutions come out of committee
the budget
THE BUDGET
  • President submits budget to Congress in February
  • Budget is analyzed by the CBO (Congressional Budget Office)
  • Budget resolutions come out of committees