Don't Mix Monetary and Fiscal Policy: Why Return an Old, Flawed Framework? In recent years, significant strides have been made in the conduct of monetary policy, as Federal Reserve had successfully pursued the objective of stable, low inflation as a foundation for sustained economic expansion. During the same period, the objectives of fiscal policy have evolved toward deficit ... could again unhinge the foundations for sustained healthy economic expansion. A Flawed Framework- the monetary policy should be adjusted to fiscal policy to achieve desired economic performance; presently suggesting ...

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• Approx Pages: 5
• Grade Level: Graduate

... , more specifically it addresses the issue of allowing the economy to grow and use up its under-employed and unemployed resources. Though a "solid recovery in the US economy" is evident, Federal Reserve officials are saying that any rise in interest rates in the United States are more than likely to be off in some way. Members of the ... Federal Reserve as well as the President of the Philadelphia Federal Reserve have made various comments, stating that "any policy adjustment need not take place in the near future", and saying that the current low rate environment would extend ... only ...

• Word Count: 516
• Approx Pages: 2
• Grade Level: Graduate