Fiscal and Monetary Policy Essay by Calwriter

This paper explains that public relations impacts the federal government and the Federal Reserve chairman in the areas of national fiscal policy, which is used to control the money supply and credit to stabilize the economy. The author points out that the Fed uses three monetary policy tools to influence the availability and cost of money and credit: open market operations, the discount rate, and reserve requirements. The paper stresses that a high unemployment rate usually produces low consumer confidence; but, until consumers are willing to buy more, businesses will not produce more goods and services, thus occasionally requiring the federal government to step in to ameliorate things.