For this assignment you need to explain how fiscal policy is different from monetary policy, including who implements these policies, the goals of each policy, and problems with or limits on those policies. When completing your assignment you should,
- Define fiscal policy in general and discretionary fiscal policy in particular.
- Identify the tools of implementing fiscal policy and the goals intended by the use of these tools.
- Define monetary policy and who implements monetary policy.
- Identify the tools of monetary policy and the intended goals of using this policy.
- For each type of policy clearly state the limits and unintended consequences of using these policies.