re: #721 wahabicorridor

Looks the same way in the UK, too.

Hey, can you explain something to me, please? When someone says they prefer ‘fiscal policy’ to ‘monetary policy’ (or vice versa), what the hell are they talking about?

Fiscal policy is tax and spending action taken by Congress and is basically political in nature. There are long time lags involved in this.

Monetary policy involves changes to the money supply and Federal Reserve discount rate to try to expand or contract the money supply and impact interest rates. It tends to impact the economy faster than fiscal policy moves.

Conservatives tend to lean towards monetary policy solutions, liberals towards fiscal policy.