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Rate Cuts and Fiscal Policy |
| Section: CURRENT ISSUES / SPECIAL REPORT--COPING WITH THE GLOBAL RECESSION |
| Author: |
| Publication: The world & I online |
| Issue Date: 1/1/2002 |
| Size: 123 Words, 821 Characters |
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In its November 2001 action, the Federal Reserve stated that heightened uncertainty and possible deteri...
. . .
...n or government spending.vbcrlf Fiscal policy has two methods of affecting the economy.vbcrlf One is through built-in stabilizers, such as unemployment compensation and income tax collections, which work automatically to push the economy back toward full employment. The other method is discretionary fiscal policy, meaning actual legislative changes in tax rates or in government spending. vbcrlf
(103 of 821 characters)
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